If you have been in business very long, you have likely run into a customer or two who knows more about painting than you do. Or at least, the customer thinks that he does. I used to get very annoyed with such people, buy now I simply find them amusing.
My company has painted more than 200 houses a year for the past 15 years. Since I get about 40% of the jobs I look at, this means that I have looked at about 7,500 paint jobs over the last decade and a half. I seriously doubt that a non-professional painter has even looked at the painting on that many homes, let alone tried to identify the various conditions and issues present.
But that certainly doesn’t stop some people from pretending that they know more than me. Apparently they believe that watching an episode on HGTV provides more experience and knowledge than years of actually painting.
I generally find that such people do not make very good customers. They tend to be very closed to listening to my advice and recommendations; they tend to have very selective memories and only recall what fits their preconceived notions.
This isn’t to say that every customer who has an opinion on painting is going to turn out bad. Indeed, I prefer customers who have done some homework and understand what should be considered regarding their project. But they also must be willing to listen.
I have said many times that sales is about communication, and communication is a two-way street. Just as a contractor should not assume that he knows what is best for the customer, the customer should not assume that he knows more than the contractor. Each must listen and learn.
Tuesday, December 29, 2009
Tuesday, December 1, 2009
Good in Theory
We often hear someone say, “That is good in theory, but it won’t work in practice.” The intended meaning is that some idea sounds logical, but in the “real world” it just won’t work. But the fact is, a theory that won’t work in practice isn’t a very good theory. Good theories make good practice. Ideas are our guide to action.
Many people—and contractors are certainly no exception—are loath to try new ideas. They get locked into a certain mindset and often refuse to consider new alternatives. They may not like the results that they are getting, but the comfort of the known is more powerful than the unknown of trying new ideas. When they hear a new idea, they are quick to reject it as “good in theory”.
I see this almost everyday. One of the most common examples is the claim by some contractor that his market won’t bear higher prices. “You don’t understand my market,” they argue. “My customers simply don’t have the money to pay $40 an hour for painting services.”
Such contractors often concede that they must charge $40 (or more) an hour to make a decent wage, but they refuse to consider methods for doing so. On paper (in theory) they agree that they can’t make money charging $25 an hour, but in real life (in practice) they can’t charge more.
Consider what this really means: The facts indicate one thing, but I am going to ignore those facts. I choose to cling to my old ideas, even though I am going broke. All of your fancy math formulas won’t change anything. Your ideas are good in theory, but they won’t work in practice.
If we consider the rate we charge in complete isolation of other facts (or consider only a few other facts), this might be true. But our selling price is not an isolated fact, divorced from many other considerations. Our selling price is a consequence of many factors; the market in which we operate is only one of those factors.
As an example, we have many options when it comes to buying a hamburger. We have McDonald’s, Wendy’s, Burger King, Jack in the Box, and other fast food restaurants. We have upscale burger joints like Fuddrucker’s. We might have local establishments as well. Each prepares their food differently, uses different condiments, and might even bake their own buns. In other words, each tries to do something different to differentiate themselves. If they didn’t—if their burgers were exactly the same—the price they charge would become the only difference, and consumers would make their choice solely on price.
But the fact that they offer something different adds another element to our choice. When choosing where to get a hamburger, we have other considerations, such as the flavor of the meat or the sides offered or the condiments used or the entire dining experience. We are willing to pay more for a burger at Fuddrucker’s than a burger at McDonald’s. And we expect more in exchange.
The same principle holds true of painting contractors and the prices we charge. If the paint job we offer looks just like the job offered by our competitors, price does become the deciding factor. If our company looks just like everyone else, then price is most important.
Now, you might think that this sounds good in theory, but the fact remains that your market simply won’t bear higher prices. But how do you know? Do you believe this simply because that is what others have told you? Have you truly tried to differentiate your company? Have you tried to become the Fuddrucker’s or are you stuck in McDonald’s mode?
The truth is, if you regard the theory as good, then you must put it into practice. A good theory leads to good results.
Many people—and contractors are certainly no exception—are loath to try new ideas. They get locked into a certain mindset and often refuse to consider new alternatives. They may not like the results that they are getting, but the comfort of the known is more powerful than the unknown of trying new ideas. When they hear a new idea, they are quick to reject it as “good in theory”.
I see this almost everyday. One of the most common examples is the claim by some contractor that his market won’t bear higher prices. “You don’t understand my market,” they argue. “My customers simply don’t have the money to pay $40 an hour for painting services.”
Such contractors often concede that they must charge $40 (or more) an hour to make a decent wage, but they refuse to consider methods for doing so. On paper (in theory) they agree that they can’t make money charging $25 an hour, but in real life (in practice) they can’t charge more.
Consider what this really means: The facts indicate one thing, but I am going to ignore those facts. I choose to cling to my old ideas, even though I am going broke. All of your fancy math formulas won’t change anything. Your ideas are good in theory, but they won’t work in practice.
If we consider the rate we charge in complete isolation of other facts (or consider only a few other facts), this might be true. But our selling price is not an isolated fact, divorced from many other considerations. Our selling price is a consequence of many factors; the market in which we operate is only one of those factors.
As an example, we have many options when it comes to buying a hamburger. We have McDonald’s, Wendy’s, Burger King, Jack in the Box, and other fast food restaurants. We have upscale burger joints like Fuddrucker’s. We might have local establishments as well. Each prepares their food differently, uses different condiments, and might even bake their own buns. In other words, each tries to do something different to differentiate themselves. If they didn’t—if their burgers were exactly the same—the price they charge would become the only difference, and consumers would make their choice solely on price.
But the fact that they offer something different adds another element to our choice. When choosing where to get a hamburger, we have other considerations, such as the flavor of the meat or the sides offered or the condiments used or the entire dining experience. We are willing to pay more for a burger at Fuddrucker’s than a burger at McDonald’s. And we expect more in exchange.
The same principle holds true of painting contractors and the prices we charge. If the paint job we offer looks just like the job offered by our competitors, price does become the deciding factor. If our company looks just like everyone else, then price is most important.
Now, you might think that this sounds good in theory, but the fact remains that your market simply won’t bear higher prices. But how do you know? Do you believe this simply because that is what others have told you? Have you truly tried to differentiate your company? Have you tried to become the Fuddrucker’s or are you stuck in McDonald’s mode?
The truth is, if you regard the theory as good, then you must put it into practice. A good theory leads to good results.
Thursday, November 5, 2009
A Million Reasons to Fail
There is no shortage of people who can tell you all of the reasons why you will fail in accomplishing your dreams. But such pronouncements are really a confession—they are telling you why they fail in achieving their goals and dreams.
When I was a teenager I played on the high school basketball team. I had always been a starter on the team, but one year several “friends” began telling me all of the reasons why I wouldn’t be a starter in the upcoming season. I hadn’t grown enough, I wasn’t fast enough to play another position, I simply wasn’t good enough. Such negativity began to weigh on me and I started to believe it. Ultimately it had an impact on my performance.
Some people do not like the idea that others harbor big dreams. It is a slap in their own face, a reminder of their own failings. But rather than re-evaluate their own conclusions and make the requisite changes, they prefer to drag others down to their level of misery.
While we cannot change such people, we can take steps to reduce their impact on us. We can refuse to deal with them. We can recognize the fact that their failures are no reflection of us. We can reject their self-pity and rise above it. Most importantly, we can associate with people who are not jealous of other’s success, but admire and encourage it.
When I was a teenager I played on the high school basketball team. I had always been a starter on the team, but one year several “friends” began telling me all of the reasons why I wouldn’t be a starter in the upcoming season. I hadn’t grown enough, I wasn’t fast enough to play another position, I simply wasn’t good enough. Such negativity began to weigh on me and I started to believe it. Ultimately it had an impact on my performance.
Some people do not like the idea that others harbor big dreams. It is a slap in their own face, a reminder of their own failings. But rather than re-evaluate their own conclusions and make the requisite changes, they prefer to drag others down to their level of misery.
While we cannot change such people, we can take steps to reduce their impact on us. We can refuse to deal with them. We can recognize the fact that their failures are no reflection of us. We can reject their self-pity and rise above it. Most importantly, we can associate with people who are not jealous of other’s success, but admire and encourage it.
Tuesday, November 3, 2009
What are you Waiting For?
A recent “Thought of the Day” from the Napoleon Hill Foundation asks this question, and then points out:
There are countless ways in which contractors bypass opportunities. The most significant is not engaging in continuing education. Knowledge is a powerful tool—the more we know the more we can identify opportunities. And the more successfully we can take advantage of them.
For example, many painting contractors loathe sales. They know that they must sell jobs, but the entire experience leaves them filled with anxiety, dread, or boredom. They just want to paint. But each lead is an opportunity. Improving your sales skills allows you to take advantage of that opportunity and be more successful. Would you prefer to give 10 estimates to get 1 job, or get 4 jobs from the same number of estimates? Would you prefer to sell at the “going rate”, or get premium prices?
What we do today determines what we can or cannot do tomorrow. The bridge we build today can be crossed tomorrow. The bridge we burn today will leave us stranded tomorrow.
Far too many people spend their entire lives waiting for that glorious day when the perfect opportunity presents itself to them. Too late, they realize that each day held opportunity for those who sought it out.Waiting for the perfect opportunity is a futile endeavor—it will never arrive. As the quote states, every day holds opportunities, and the ones we take advantage of today will create additional opportunities tomorrow. A building—and success—is constructed one brick at a time.
There are countless ways in which contractors bypass opportunities. The most significant is not engaging in continuing education. Knowledge is a powerful tool—the more we know the more we can identify opportunities. And the more successfully we can take advantage of them.
For example, many painting contractors loathe sales. They know that they must sell jobs, but the entire experience leaves them filled with anxiety, dread, or boredom. They just want to paint. But each lead is an opportunity. Improving your sales skills allows you to take advantage of that opportunity and be more successful. Would you prefer to give 10 estimates to get 1 job, or get 4 jobs from the same number of estimates? Would you prefer to sell at the “going rate”, or get premium prices?
What we do today determines what we can or cannot do tomorrow. The bridge we build today can be crossed tomorrow. The bridge we burn today will leave us stranded tomorrow.
Thursday, October 29, 2009
Dominated by Fear
Too often, we let our fears dominate our thinking and our actions. It is not uncommon to let the possibility of failure stop us in our tracks. And in the process, the possibility of success is also stopped.
Failure is a part of life. No action is guaranteed to lead to the desired results. But the failure to act will most certainly keep us from achieving the goals we desire.
An effective way to overcome fear is through planning. Planning allows us to envision the end goal and the means to achieve it. Planning allows us to project possible obstacles and the means for overcoming them. Planning builds confidence—it is a kind of test run during which we can “practice” the steps needed to achieve our goals.
To use a simple example, let us say that you want to run a marathon one year from today. You are currently a couch potato and the thought of running 26+ miles seems impossible, and it probably is in this context. But if you develop a training plan the goal seems much less daunting.
With the marathon 12 months away you can plan specific steps to build your endurance. You can research suggested training methods, diet changes, exercise regiments, etc. You can map out milestones, such as being able to run 10 miles in less than 90 minutes within 3 months. Armed with this knowledge, and a plan, you will be more confident that you can actually achieve your goal.
The same is true of business goals (or any goal for that matter). And the bigger the goal, the more important it is to plan.
Failure is a part of life. No action is guaranteed to lead to the desired results. But the failure to act will most certainly keep us from achieving the goals we desire.
An effective way to overcome fear is through planning. Planning allows us to envision the end goal and the means to achieve it. Planning allows us to project possible obstacles and the means for overcoming them. Planning builds confidence—it is a kind of test run during which we can “practice” the steps needed to achieve our goals.
To use a simple example, let us say that you want to run a marathon one year from today. You are currently a couch potato and the thought of running 26+ miles seems impossible, and it probably is in this context. But if you develop a training plan the goal seems much less daunting.
With the marathon 12 months away you can plan specific steps to build your endurance. You can research suggested training methods, diet changes, exercise regiments, etc. You can map out milestones, such as being able to run 10 miles in less than 90 minutes within 3 months. Armed with this knowledge, and a plan, you will be more confident that you can actually achieve your goal.
The same is true of business goals (or any goal for that matter). And the bigger the goal, the more important it is to plan.
Monday, October 26, 2009
Accountability
You have probably heard a lot about holding employees accountable for their actions. But how do you hold yourself accountable? After all, you make the rules for your business, and you can break them whenever you want.
One way to hold yourself accountable is to share your plans and goals with others. If you proclaim your intentions to the world, you are more likely to follow up on them. If you keep them “secret”—to yourself—it can be rather easy to let things slip.
It is quite easy to set goals and then promptly forget them. The details of running a business, not to mention life itself, can distract us or send us off course. We can make excuses and procrastinate. There is no shortage of reasons why we can’t actively work on our goals. And this is even easier when those goals reside solely in the inner recesses of our mind.
Many contractors start their business because they want “freedom”—they don’t want the restrictions imposed by a boss or large corporation. They want to be able to do what they want, when they want. But such “freedom” is not a recipe for success. Success is not gained by following one’s whims, but by setting goals and pursuing them.
Ultimately, we can only be responsible for ourselves. We are the only person who can decide what we want out of life and how we will achieve it. And that requires that we hold ourselves accountable.
One way to hold yourself accountable is to share your plans and goals with others. If you proclaim your intentions to the world, you are more likely to follow up on them. If you keep them “secret”—to yourself—it can be rather easy to let things slip.
It is quite easy to set goals and then promptly forget them. The details of running a business, not to mention life itself, can distract us or send us off course. We can make excuses and procrastinate. There is no shortage of reasons why we can’t actively work on our goals. And this is even easier when those goals reside solely in the inner recesses of our mind.
Many contractors start their business because they want “freedom”—they don’t want the restrictions imposed by a boss or large corporation. They want to be able to do what they want, when they want. But such “freedom” is not a recipe for success. Success is not gained by following one’s whims, but by setting goals and pursuing them.
Ultimately, we can only be responsible for ourselves. We are the only person who can decide what we want out of life and how we will achieve it. And that requires that we hold ourselves accountable.
Thursday, September 3, 2009
We Get What we Expect
We Get What we Expect
Dan Miller has an interesting story about a recent handyman experience. He was installing some lighting and:
If we approach the customer with a negative attitude we are establishing a confrontational situation. This will certainly not help the situation, and will most likely lead to an actual confrontation. We wind up getting exactly what we expected.
I’ve had customers call up and claim that “all of the paint is falling off of the wall” or something of the sort. Knowing that this is very unlikely, it would be easy to conclude that the customer is going to be a problem. But if I’ve seen it once, I’ve seen it a trillion times—customers can exaggerate. They just paid good money for a paint job and the slightest problem can become a huge concern.
Rather than jump to conclusions or set up expectations about the customer’s motivation, the proper approach is that of Lt. Friday from Dragnet: get the facts. Then, and only then, can we deal with the actual situation, rather than the fantasy we have created in our own mind.
Dan Miller has an interesting story about a recent handyman experience. He was installing some lighting and:
Twice in this process I recoiled with the stinging shock of electric power surging through my arms – but wait – there was no power yet attached. I hadn’t connected the line to the power source. Just the “anticipation” of power convinced me I had already “felt” a serious shock.I have witnessed the same thing with contractors, particularly when it comes to dealing with a complaining customer. When the customer calls with a problem, they immediately jump to conclusions—“The customer is just picky”; or “The customer just doesn’t want to pay”; or “You can never please some people”. In each case, the contractor has a certain expectation that may or may not be true. But he will invariably act as if it were true, which can often be a self-fulfilling prophecy.
If we approach the customer with a negative attitude we are establishing a confrontational situation. This will certainly not help the situation, and will most likely lead to an actual confrontation. We wind up getting exactly what we expected.
I’ve had customers call up and claim that “all of the paint is falling off of the wall” or something of the sort. Knowing that this is very unlikely, it would be easy to conclude that the customer is going to be a problem. But if I’ve seen it once, I’ve seen it a trillion times—customers can exaggerate. They just paid good money for a paint job and the slightest problem can become a huge concern.
Rather than jump to conclusions or set up expectations about the customer’s motivation, the proper approach is that of Lt. Friday from Dragnet: get the facts. Then, and only then, can we deal with the actual situation, rather than the fantasy we have created in our own mind.
Monday, August 31, 2009
Learning by Spiraling
Learning seldom occurs in a linear line. For example, when we read a book, we might grasp the main points and a few of the minor points. But it is almost impossible to get every point in the book—it is too much to absorb at one time.
Spiraling involves re-visiting old ideas for the purpose of picking up nuances missed the first time. When we spiral we bring an expanded context of knowledge to the topic. We have integrated and applied certain information, and when we re-visit the topic we are able to see deeper meaning and wider application than we could before.
Even before I learned about spiraling, I often had the following experience: I would read something and think, “I get this.” Later, when I revisited the point, I would grasp it even better, and think, “Now I really get it.” And later still, I would see new applications and think, “Now I really, really understand.” The interesting thing is, no matter how many times I come back to these issues, it seems as if there is still something that alluded me before.
So dust off those old books and dive back in. You might be surprised what you learn.
Spiraling involves re-visiting old ideas for the purpose of picking up nuances missed the first time. When we spiral we bring an expanded context of knowledge to the topic. We have integrated and applied certain information, and when we re-visit the topic we are able to see deeper meaning and wider application than we could before.
Even before I learned about spiraling, I often had the following experience: I would read something and think, “I get this.” Later, when I revisited the point, I would grasp it even better, and think, “Now I really get it.” And later still, I would see new applications and think, “Now I really, really understand.” The interesting thing is, no matter how many times I come back to these issues, it seems as if there is still something that alluded me before.
So dust off those old books and dive back in. You might be surprised what you learn.
Friday, August 28, 2009
Maintenance Programs and Differentiation
One of the easiest ways to differentiate your painting company is to offer a maintenance program. The most basic program involves an annual inspection to identify problems with exterior painted surfaces, and then a recommendation for solutions.
The benefits to the customer can be significant. A maintenance program can help them keep their home looking good while also reducing maintenance costs. For example, some areas--such as window sills and fascia boards--tend to wear more than others. Keeping these areas properly painted can avoid wood rot, and the costs associated with repairs. Rather than wait for a complete repaint, it might only be necessary to repaint certain areas of the home.
For the contractor, a maintenance program can keep you in front of your past customers. Such a program can provide steady leads.
Of course, for a maintenance program to work, the contractor must be honest with his customers. He should not recommend work that is not needed. If something is optional, say so. Don't try to maximize today's work at the expense of future work by taking advantage of the situation.
While the specifics will vary depending on architectural styles, building materials, climate, etc. a maintenance program can include an inspection for failing paint, storm damage, rotting wood, broken caulk joints, gutter cleaning, and pressure washing. Many of these services are required on a regular basis to keep exterior surfaces protected and looking fresh.
A more elaborate program might include a long-term schedule and budget. This helps the customer anticipate future expenses, and is a service that few contractors offer. It is a great way to differentiate your company.
The benefits to the customer can be significant. A maintenance program can help them keep their home looking good while also reducing maintenance costs. For example, some areas--such as window sills and fascia boards--tend to wear more than others. Keeping these areas properly painted can avoid wood rot, and the costs associated with repairs. Rather than wait for a complete repaint, it might only be necessary to repaint certain areas of the home.
For the contractor, a maintenance program can keep you in front of your past customers. Such a program can provide steady leads.
Of course, for a maintenance program to work, the contractor must be honest with his customers. He should not recommend work that is not needed. If something is optional, say so. Don't try to maximize today's work at the expense of future work by taking advantage of the situation.
While the specifics will vary depending on architectural styles, building materials, climate, etc. a maintenance program can include an inspection for failing paint, storm damage, rotting wood, broken caulk joints, gutter cleaning, and pressure washing. Many of these services are required on a regular basis to keep exterior surfaces protected and looking fresh.
A more elaborate program might include a long-term schedule and budget. This helps the customer anticipate future expenses, and is a service that few contractors offer. It is a great way to differentiate your company.
Tuesday, August 25, 2009
Desperate Times
It seems that a lot of painting contractors are experiencing desperate times. Leads are down and they are not sure what to do. As their bank account slowly dwindles they are hesitant to spend money on advertising, but also know that without advertising their will not be any leads.
There is no easy fix, but sitting around watching Oprah isn't the answer either. If I were in such a situation, I would take two simple steps. First, I would contact past customers. Personally, I would (and do) use newsletters. These have greater shelf life, are more informative, and from my experience, are more effective than other media. A less effective option is to use postcards.
The second step I would take is to design and print fliers or door hangers and hit the streets. If I did not have a job, it would be my job to get one.
Handing out fliers is no fun. When I started I did it several times a week. But it works and it is inexpensive. You can target the areas where you want to work (assuming that fliers are allowed). More importantly, it is pro-active. Leads are not going to magically fall into your lap. If you want something, you must work for it.
Building a business isn't always fun. Sometimes it requires that we do things that we do not enjoy, or even hate. But sitting around crying in our beer isn't going to make the situation better.
And when you get a job, put 10% aside for future marketing. Develop a marketing plan and then implement it. Otherwise, you will find yourself back in the same situation at some future time.
There is no easy fix, but sitting around watching Oprah isn't the answer either. If I were in such a situation, I would take two simple steps. First, I would contact past customers. Personally, I would (and do) use newsletters. These have greater shelf life, are more informative, and from my experience, are more effective than other media. A less effective option is to use postcards.
The second step I would take is to design and print fliers or door hangers and hit the streets. If I did not have a job, it would be my job to get one.
Handing out fliers is no fun. When I started I did it several times a week. But it works and it is inexpensive. You can target the areas where you want to work (assuming that fliers are allowed). More importantly, it is pro-active. Leads are not going to magically fall into your lap. If you want something, you must work for it.
Building a business isn't always fun. Sometimes it requires that we do things that we do not enjoy, or even hate. But sitting around crying in our beer isn't going to make the situation better.
And when you get a job, put 10% aside for future marketing. Develop a marketing plan and then implement it. Otherwise, you will find yourself back in the same situation at some future time.
Friday, August 14, 2009
An Excerpt from Getting Out of the Bucket: Systems
Every business will experience problems, no matter how carefully the owner plans. Every business will experience undesired results, no matter how rigorous the execution. Every business owner will experience frustrations, no matter how conscience his efforts.
Our goal with systems is to minimize the number and impact of these problems, frustrations, and undesired results. By developing and implementing systems we can achieve greater consistency in the results we experience, and greatly reduce stress and frustration.
Your systems should identify the most efficient means for achieving the desired results. In other words, if you want an employee to perform a task a specific way, document the steps involved. This becomes your procedure for that task.
Consistent results require consistent actions. When we identify and document the actions that will achieve our desired results, success becomes simply a matter of performing those actions.
A bottleneck is defined as anything that restricts or prevents us from accomplishing our goals. In general, bottlenecks manifest themselves in two ways.
Anytime we experience undesired results, a bottleneck is present. An undesired result may be as simple as not getting what we wanted or expected, or it may mean the development of a problem. In either case, the result is not what we desired. Examples include call backs, poor quality work, a project that goes over budget, and insufficient leads.
Another sign of a bottleneck is frustration. Frustrations may result in the absence of an undesired result. For example, improper planning may result in a material shortage that requires an emergency trip to get more materials. We may still get the desired result—a satisfied customer and profitable job—but the shortage creates a frustration. Another example would be employees asking unnecessary questions.
Most bottlenecks have one of two fundamental causes: a lack of systems and procedures, or the appropriate procedure was not followed.
A system could be defined as an integrated whole, in which each part is interdependent with other parts. Together, the individual parts contribute to the overall function of the item in question. For example, an automobile consists of many individual parts. If a particular part fails, the entire automobile may not function. In a business, if a particular function or task is not performed properly, the business may not meet its goals. In other words, a bottleneck will result.
Systems will help us reduce, eliminate, and/ or prevent bottlenecks.
To learn more about Getting Out of the Bucket, click here.
Our goal with systems is to minimize the number and impact of these problems, frustrations, and undesired results. By developing and implementing systems we can achieve greater consistency in the results we experience, and greatly reduce stress and frustration.
Your systems should identify the most efficient means for achieving the desired results. In other words, if you want an employee to perform a task a specific way, document the steps involved. This becomes your procedure for that task.
Consistent results require consistent actions. When we identify and document the actions that will achieve our desired results, success becomes simply a matter of performing those actions.
A bottleneck is defined as anything that restricts or prevents us from accomplishing our goals. In general, bottlenecks manifest themselves in two ways.
Anytime we experience undesired results, a bottleneck is present. An undesired result may be as simple as not getting what we wanted or expected, or it may mean the development of a problem. In either case, the result is not what we desired. Examples include call backs, poor quality work, a project that goes over budget, and insufficient leads.
Another sign of a bottleneck is frustration. Frustrations may result in the absence of an undesired result. For example, improper planning may result in a material shortage that requires an emergency trip to get more materials. We may still get the desired result—a satisfied customer and profitable job—but the shortage creates a frustration. Another example would be employees asking unnecessary questions.
Most bottlenecks have one of two fundamental causes: a lack of systems and procedures, or the appropriate procedure was not followed.
A system could be defined as an integrated whole, in which each part is interdependent with other parts. Together, the individual parts contribute to the overall function of the item in question. For example, an automobile consists of many individual parts. If a particular part fails, the entire automobile may not function. In a business, if a particular function or task is not performed properly, the business may not meet its goals. In other words, a bottleneck will result.
Systems will help us reduce, eliminate, and/ or prevent bottlenecks.
To learn more about Getting Out of the Bucket, click here.
Tuesday, August 11, 2009
Gurus and Experts
With the growth of the Internet and desktop publishing it has become quite easy for someone with a small amount of experience to instantly become a self-professed expert. For a painting contractor searching for help with his business, it can be difficult to identify the true experts from the pretenders. How can a contractor determine whose advice will be helpful and whose will be a waste of money?
There are many factors that go into answering this question. But one thing rings clear—there are no magic bullets. Simply purchasing a book or manual will not improve your business. No matter how clearly stated, extensive, and helpful an idea may be, it will not magically inject itself into your business. You must exert the effort to implement any idea.
Over the years I have spent tens of thousands of dollars on books, tapes, memberships, and other types of training. While some have certainly been more beneficial than others, one thing has stood out—the quality of the material could usually be determined before I ever made a purchase.
Many “experts” are quick to claim their expertise, but offer little evidence. They tell you how their book or program will make you tons of money, but give you no ideas that you can test—until you buy their book. Trust me, they say, and I shall deliver you to the promised land.
These “experts” may have good intentions. They may offer some good ideas. But if I am going to spend my hard-earned money on business advice, I want some evidence that it is actually going to be worth it.
I’ve found that those with the best information readily share much of it for free. Richard Kaller of the Certified Contractors NetWork was the epitome of this approach. He was a prolific poster on various forums, and the information he offered was extremely beneficial. He had such a wealth of information, ideas, and advice that he could afford to give away more than most contractors know.
I have tried to take a similar approach, though I would not begin to consider myself in Richard’s league. Through this blog and numerous forums I have written tens of thousands of words, explaining in my own words, the ideas that have helped me in my business. In short, rather than simply assert my expertise, I have tried to demonstrate it.
This is not to say that I have all of the answers. I don’t. But I certainly have a lot of them. And while some may take exception to that claim, only you can make that judgment as it pertains to your business.
There are many factors that go into answering this question. But one thing rings clear—there are no magic bullets. Simply purchasing a book or manual will not improve your business. No matter how clearly stated, extensive, and helpful an idea may be, it will not magically inject itself into your business. You must exert the effort to implement any idea.
Over the years I have spent tens of thousands of dollars on books, tapes, memberships, and other types of training. While some have certainly been more beneficial than others, one thing has stood out—the quality of the material could usually be determined before I ever made a purchase.
Many “experts” are quick to claim their expertise, but offer little evidence. They tell you how their book or program will make you tons of money, but give you no ideas that you can test—until you buy their book. Trust me, they say, and I shall deliver you to the promised land.
These “experts” may have good intentions. They may offer some good ideas. But if I am going to spend my hard-earned money on business advice, I want some evidence that it is actually going to be worth it.
I’ve found that those with the best information readily share much of it for free. Richard Kaller of the Certified Contractors NetWork was the epitome of this approach. He was a prolific poster on various forums, and the information he offered was extremely beneficial. He had such a wealth of information, ideas, and advice that he could afford to give away more than most contractors know.
I have tried to take a similar approach, though I would not begin to consider myself in Richard’s league. Through this blog and numerous forums I have written tens of thousands of words, explaining in my own words, the ideas that have helped me in my business. In short, rather than simply assert my expertise, I have tried to demonstrate it.
This is not to say that I have all of the answers. I don’t. But I certainly have a lot of them. And while some may take exception to that claim, only you can make that judgment as it pertains to your business.
Sunday, August 2, 2009
An Excerpt from Getting Out of the Bucket: Starting a Business
Starting a painting business is easy. Starting a painting business that will be successful isn’t.
There is much more to operating a successful painting business than putting paint on the wall. Issues such as marketing, estimating, sales, administration, and production management are all crucial components to success.
While each business owner will have different goals and expectations for his business, the basic principles necessary for success do not vary. Whether you want to have a one-man operation or a twenty man shop, sound business principles are a necessary component of achieving the goals you establish.
If I had to start my painting business all over again, I would take the following 5 steps:
1. Learn about owning a small business. There are many resources, including books, tapes, forums such as Paint Talk, and of course, Out of the Bucket.com.
2. Identify where I want to be in 1 year. For example, what kind of revenue, what kind of profit, what kind of income. And then I'd develop a plan for accomplishing this.
3. Invest in marketing-- signs, business cards, web site, and fliers/ door hangers. The bulk of the money would go into fliers/ door hangers and I would hand them out myself. I would invest at least $500, and more if I could afford it.
4. Learn to sell at the right price, which implies that I know what the right price is. I would learn more about the financial side of the business.
5. Develop some simple systems for the basics of the business. Such as, how will I prep an exterior job, how will I prep an interior job, etc. I would include some administration issues as well. And I would put this in writing.
These 5 steps do not exhaust the possibilities, but after 22 years in business I am confident that the above steps would save a tremendous amount of time and money.
There are certainly multiple paths to business success. It is possible to be successful and act in complete defiance of the above suggestions. However, the above steps are proven—they do lead to success. From my perspective, anything that makes the journey easier is certainly worth investigating.
To learn more about Getting Out of the Bucket, click here.
Tuesday, July 28, 2009
Two Common Mistakes in Estimating Paint Jobs
Paint contractors often make two important errors in relation to how to estimate painting jobs. Both of these are efforts at a short-cut, and neither will be profitable over the long term.
One mistake is to fret about the “going rate”-what others charge. To get directly to the point: Your bidding should the pricing of other contractors. Their pricing has no impact on what your price ought to be-your production rates, your expenses, and your monetary objectives are all that matter.
If other painting companies are willing to labor for less than you want to make, will that mean that you should? If your competition is clueless in regard to estimating and the price they should charge, does that mean that you ought to go along with their lead? If other painting companies are gradually going bankrupt, do you truly want to emulate them? If your reply is no, then what difference does it make what they charge?
Undoubtedly your competition has an influence on your business. If another company offers comparable service and value for half the price, the customer will probably go with the lesser price. But it is very doubtful-if not unfeasible-for a business to provide superior value at cut-rate prices.
The price you must charge for a particular project should include the following: labor costs, paint and sundry expenses, indirect costs (overhead), and profit. Every one of these can vary widely from business to business. To be anxious regarding what others are charging is to overlook these facts.
A second mistake, which is very similar to the first, is to estimate by the square foot. On the surface, this may seem plausible. Nevertheless, the square foot concerned is on the floor, rather than a paintable surface.
This form of bidding is common in new construction. It provides an easy (and I might add, lazy) approach to bid. I say this since the size of the floor has zero to do with what is being painted.
Think about the following illustration: A room that is 20’ x 20’ with an 8’ ceiling has 400 square feet of floor space. The wall area is 640 square feet. There could be 80 linear feet of baseboards and 80 feet of crown moulding. If that room were divided into 4 equal size rooms of 10’ x 10’, the wall area would double to 1,280 square feet. Similarly, baseboards and crown moulding could also double.
Regardless what you charge per square foot, the previous illustration demonstrates that the floor has hardly influence on the real work. But if you estimate according to the floor area, your price will not precisely reflect the real work to be performed.
Pricing paint projects isn’t heart surgery. But it shouldn’t be done with blind guesses, tarot cards, or Dart boards either. Numerous aspects must to be considered when pricing a job. But the size of the floor isn't one of them.
You might think, “But everybody does it this way. Surely it isn't that awful.” First, everyone doesn’t do it this way. Second, 90% of the painting contractors beginning business this year won’t be around in 5 years. So if you want to do it similar to everyone else, you are probably going to end up like everybody else-burned out, disillusioned, and bankrupt.
It is never too belated to learn proper estimating practices. And if you are just starting a painting business, now is the moment to study how to estimate paint jobs.
One mistake is to fret about the “going rate”-what others charge. To get directly to the point: Your bidding should the pricing of other contractors. Their pricing has no impact on what your price ought to be-your production rates, your expenses, and your monetary objectives are all that matter.
If other painting companies are willing to labor for less than you want to make, will that mean that you should? If your competition is clueless in regard to estimating and the price they should charge, does that mean that you ought to go along with their lead? If other painting companies are gradually going bankrupt, do you truly want to emulate them? If your reply is no, then what difference does it make what they charge?
Undoubtedly your competition has an influence on your business. If another company offers comparable service and value for half the price, the customer will probably go with the lesser price. But it is very doubtful-if not unfeasible-for a business to provide superior value at cut-rate prices.
The price you must charge for a particular project should include the following: labor costs, paint and sundry expenses, indirect costs (overhead), and profit. Every one of these can vary widely from business to business. To be anxious regarding what others are charging is to overlook these facts.
A second mistake, which is very similar to the first, is to estimate by the square foot. On the surface, this may seem plausible. Nevertheless, the square foot concerned is on the floor, rather than a paintable surface.
This form of bidding is common in new construction. It provides an easy (and I might add, lazy) approach to bid. I say this since the size of the floor has zero to do with what is being painted.
Think about the following illustration: A room that is 20’ x 20’ with an 8’ ceiling has 400 square feet of floor space. The wall area is 640 square feet. There could be 80 linear feet of baseboards and 80 feet of crown moulding. If that room were divided into 4 equal size rooms of 10’ x 10’, the wall area would double to 1,280 square feet. Similarly, baseboards and crown moulding could also double.
Regardless what you charge per square foot, the previous illustration demonstrates that the floor has hardly influence on the real work. But if you estimate according to the floor area, your price will not precisely reflect the real work to be performed.
Pricing paint projects isn’t heart surgery. But it shouldn’t be done with blind guesses, tarot cards, or Dart boards either. Numerous aspects must to be considered when pricing a job. But the size of the floor isn't one of them.
You might think, “But everybody does it this way. Surely it isn't that awful.” First, everyone doesn’t do it this way. Second, 90% of the painting contractors beginning business this year won’t be around in 5 years. So if you want to do it similar to everyone else, you are probably going to end up like everybody else-burned out, disillusioned, and bankrupt.
It is never too belated to learn proper estimating practices. And if you are just starting a painting business, now is the moment to study how to estimate paint jobs.
Monday, July 27, 2009
Zappos
I recently read about Zappos on Zig Ziglar’s blog. At first I thought this was a joke, as the company sells shoes online. The idea struck me as bizarre—I couldn’t imagine anyone buying a pair of shoes without first trying them on. But they must be doing something right, as Amazon.com recently bought Zappos for about $928 million.
From what I have read, a large part of the success of Zappos is attributed to the company being a fun place to work. Indeed, one of their “ten commandments” is “Create fun and a little weirdness”. This may seem like an odd directive, but employees embrace the atmosphere that exists at Zappos. And that is reflected in their customer service. For example, if a customer mentions having a bad day, she might find flowers on her doorstep the next morning.
Such offbeat tactics might seem silly, but they have created a growing legion of loyal customers. And that is always a good thing. Sometimes all it takes is a little imagination.
From what I have read, a large part of the success of Zappos is attributed to the company being a fun place to work. Indeed, one of their “ten commandments” is “Create fun and a little weirdness”. This may seem like an odd directive, but employees embrace the atmosphere that exists at Zappos. And that is reflected in their customer service. For example, if a customer mentions having a bad day, she might find flowers on her doorstep the next morning.
Such offbeat tactics might seem silly, but they have created a growing legion of loyal customers. And that is always a good thing. Sometimes all it takes is a little imagination.
Saturday, July 11, 2009
Lessons from Child Rearing
Even though I don’t have children, I find the topic of child-rearing interesting. Getting Things Done—a personal productivity site—recently had an interesting post involving children. The author was going to spend the day with his children, and involved them in planning the day.
They began by listing some of the activities they wanted to do. They then identified how long each activity would take—there is no sense in trying to cram 10 pounds of potatoes into a 5 pound sack. I won’t relate the entire story, but it turned out to be a fun day for everyone.
The lesson in the story is directly applicable to small business owners. Often, we simply dictate to our employees how things will be. After all, we are the boss and if they don’t like it… But this often gets us results different from what we want and expect. We don’t get “buy in”.
Like the parent who involved his children in planning the day, we should involve our employees in the decision making process. This doesn’t mean that we give in to whatever ideas they come up with, but it does mean that we give their ideas serious consideration. Not only are they more likely to approve of the results, and therefore implement them, there is a good chance that they will have some better ideas.
I certainly don’t mean to equate children and employees, but in a certain sense there is a similarity. In both relationships, we have the final authority. In both relationships, we are looked upon as the expert and the guiding force. We are the leader. While this requires a firm hand, it does not mean that we should be dictators.
I am familiar with parents who tell their children to do something “because I said so”. This hardly helps the child understand the rationale behind the directive. However, when the parent explains his reasons (in a manner the child can understand), the results can be much more satisfactory to all involved. The same applies to our employees.
They began by listing some of the activities they wanted to do. They then identified how long each activity would take—there is no sense in trying to cram 10 pounds of potatoes into a 5 pound sack. I won’t relate the entire story, but it turned out to be a fun day for everyone.
The lesson in the story is directly applicable to small business owners. Often, we simply dictate to our employees how things will be. After all, we are the boss and if they don’t like it… But this often gets us results different from what we want and expect. We don’t get “buy in”.
Like the parent who involved his children in planning the day, we should involve our employees in the decision making process. This doesn’t mean that we give in to whatever ideas they come up with, but it does mean that we give their ideas serious consideration. Not only are they more likely to approve of the results, and therefore implement them, there is a good chance that they will have some better ideas.
I certainly don’t mean to equate children and employees, but in a certain sense there is a similarity. In both relationships, we have the final authority. In both relationships, we are looked upon as the expert and the guiding force. We are the leader. While this requires a firm hand, it does not mean that we should be dictators.
I am familiar with parents who tell their children to do something “because I said so”. This hardly helps the child understand the rationale behind the directive. However, when the parent explains his reasons (in a manner the child can understand), the results can be much more satisfactory to all involved. The same applies to our employees.
Monday, June 29, 2009
That’s Too Much Trouble
A recent post on Michael Stone’s blog raises an interesting point—many contractors seem to have plenty of time to complain, but no time to fix or prevent the object of their complaints. He tells the story of a contractor who was receiving complaints that his employees were damaging things they didn’t work on. Michael suggesting taking pictures prior to starting work. The contractor declared that that would be too much trouble.
Apparently, dealing with customer complaints wasn’t too much trouble. Apparently, upsetting customers is preferable to avoiding the complaints. Apparently, an ounce of prevention isn’t worth a pound of cure (in this contractor’s opinion).
Years ago we noticed that we seemed to get the same types of complaints over and over. It wasn’t that we had tons of complaints, just that the one we got were similar. I sat down with my supervisors and we made a list of the common complaints and what caused them. We discovered, like the contractor above, that most of these were pre-existing conditions. But we were getting blamed for them!
So we put together procedures to identify these items before starting any work, and we then brought them to the customer’s attention. Not surprisingly, most of the time the customer was unaware of these issues. But when inspecting their fresh paint job, they would have seen these issues and assumed we were responsible. Suddenly the complaints virtually stopped. And we often were able to sell additional work to correct the problem.
The little extra time we spent addressing these problems has saved us countless hours over the years, avoided upsetting customers, and perhaps best of all, helped us increase our sales.
Apparently, dealing with customer complaints wasn’t too much trouble. Apparently, upsetting customers is preferable to avoiding the complaints. Apparently, an ounce of prevention isn’t worth a pound of cure (in this contractor’s opinion).
Years ago we noticed that we seemed to get the same types of complaints over and over. It wasn’t that we had tons of complaints, just that the one we got were similar. I sat down with my supervisors and we made a list of the common complaints and what caused them. We discovered, like the contractor above, that most of these were pre-existing conditions. But we were getting blamed for them!
So we put together procedures to identify these items before starting any work, and we then brought them to the customer’s attention. Not surprisingly, most of the time the customer was unaware of these issues. But when inspecting their fresh paint job, they would have seen these issues and assumed we were responsible. Suddenly the complaints virtually stopped. And we often were able to sell additional work to correct the problem.
The little extra time we spent addressing these problems has saved us countless hours over the years, avoided upsetting customers, and perhaps best of all, helped us increase our sales.
Wednesday, June 17, 2009
Principles and Plagiarism
My contracting company has had a web site for nearly 14 years—we were one of the first painting contractors with a web presence. This, along with my writing skills, has made the content of my site a target for pirates.
Over the years, a remarkable number of individuals have decided that they would use content from my site. With only a handful of exceptions, this was done without my knowledge or permission. In other words, they stole from me.
What I find particularly interesting in many of these cases is the particular content these pirates choose. For example, one decided to copy my entire site, substituting the name of his company in the appropriate places. He even used quotes from my employees talking about an organization he did not belong to.
Included in his plagiarism was the use of my tag line, “Painters with Principles”. This was both amusing and infuriating. The infuriating part was his blatant disregard for the intellectual property rights of others. The amusing part was his hypocritical claim of being principled.
To be principled means to be guided by a specific set of rules of conduct. It means that one acts in a certain manner consistently and without exception, that one does not make exceptions when it is “convenient” or expedient. Principles provide us with the tools to choose our values and the means for attaining them.
You may think that this is ivory-tower BS that has nothing to do with paint contracting. You would be horribly wrong.
Consider just a few of the choices you might face in a day:
1. You meet with a customer to inspect a job and promise an estimate on a particular day. Do you honor your commitment, or ignore it because you conclude that the customer is cheap and won’t pay your price?
2. You discover some rotted wood that wasn’t included in your estimate. Do you tell the customer and supply a price, or do you slap some caulk on it?
3. A customer asks if you like the color she selected. Do you give your opinion, and simply tell her that it will look great?
Your answer to each of these—and the myriad other choices you face in a day—are ultimately determined by your principles, or lack thereof. And your choices will ultimately determine the results that you get. Your choices will ultimately determine if you are successful or a failure.
Those who think that they can steal my words are certainly cheating me. They will come up with all kinds of excuses to rationalize their behavior—“I’m not hurting anyone”, “it’s just words”, “everybody does it”, etc. But what they don’t realize is that they are the primary victim of their dishonesty. They can lie to their customers (which they are doing by plagiarizing), they can lie to their wives, they can lie to the world, but they cannot lie to themselves. They know, whether they choose to admit it or not, that they are scoundrels.
There was a time when I would simmer over such actions. I no longer do so. Instead, I remind myself that such people are living the miserable lives that they deserve. And I let my lawyer make their lives a little more miserable.
Over the years, a remarkable number of individuals have decided that they would use content from my site. With only a handful of exceptions, this was done without my knowledge or permission. In other words, they stole from me.
What I find particularly interesting in many of these cases is the particular content these pirates choose. For example, one decided to copy my entire site, substituting the name of his company in the appropriate places. He even used quotes from my employees talking about an organization he did not belong to.
Included in his plagiarism was the use of my tag line, “Painters with Principles”. This was both amusing and infuriating. The infuriating part was his blatant disregard for the intellectual property rights of others. The amusing part was his hypocritical claim of being principled.
To be principled means to be guided by a specific set of rules of conduct. It means that one acts in a certain manner consistently and without exception, that one does not make exceptions when it is “convenient” or expedient. Principles provide us with the tools to choose our values and the means for attaining them.
You may think that this is ivory-tower BS that has nothing to do with paint contracting. You would be horribly wrong.
Consider just a few of the choices you might face in a day:
1. You meet with a customer to inspect a job and promise an estimate on a particular day. Do you honor your commitment, or ignore it because you conclude that the customer is cheap and won’t pay your price?
2. You discover some rotted wood that wasn’t included in your estimate. Do you tell the customer and supply a price, or do you slap some caulk on it?
3. A customer asks if you like the color she selected. Do you give your opinion, and simply tell her that it will look great?
Your answer to each of these—and the myriad other choices you face in a day—are ultimately determined by your principles, or lack thereof. And your choices will ultimately determine the results that you get. Your choices will ultimately determine if you are successful or a failure.
Those who think that they can steal my words are certainly cheating me. They will come up with all kinds of excuses to rationalize their behavior—“I’m not hurting anyone”, “it’s just words”, “everybody does it”, etc. But what they don’t realize is that they are the primary victim of their dishonesty. They can lie to their customers (which they are doing by plagiarizing), they can lie to their wives, they can lie to the world, but they cannot lie to themselves. They know, whether they choose to admit it or not, that they are scoundrels.
There was a time when I would simmer over such actions. I no longer do so. Instead, I remind myself that such people are living the miserable lives that they deserve. And I let my lawyer make their lives a little more miserable.
Wednesday, June 10, 2009
Painting Estimates and Real Estate
I have recently begun to look at real estate investing. With the number of foreclosures in the market, and depressed prices, this is a good time to get into the market.
We spent several months educating ourselves before we began to seriously look at properties. Now that we are doing so, I see a lot of similarities between estimating painting jobs and purchasing real estate.
In both cases, you must know your numbers. I can analyze a property without leaving my desk. If the numbers work, then we go look at it to verify assumptions and put our eyes on it. But knowing the numbers is key--if the numbers work it is a good deal. If the numbers don't work, I would be wasting my time.
This is no different from painting. If you know your numbers, you can easily identify what price you must charge on any particular job. If you don't know your numbers, you are wasting your time, and maybe burning money.
Estimating/ sales is a numbers game. We aren't going to get every job, but if we have enough leads and land a reasonable number, we will be profitable. The same is true in real estate--we have already submitted two offers and are looking for more to bid on. We won't get them all, but if we make solid offers our real estate gig will do well.
I've heard many contractors say that our profession makes us naturals to get into real estate. I think there is some truth in that. But I think what really prepares us is knowing our numbers.
We spent several months educating ourselves before we began to seriously look at properties. Now that we are doing so, I see a lot of similarities between estimating painting jobs and purchasing real estate.
In both cases, you must know your numbers. I can analyze a property without leaving my desk. If the numbers work, then we go look at it to verify assumptions and put our eyes on it. But knowing the numbers is key--if the numbers work it is a good deal. If the numbers don't work, I would be wasting my time.
This is no different from painting. If you know your numbers, you can easily identify what price you must charge on any particular job. If you don't know your numbers, you are wasting your time, and maybe burning money.
Estimating/ sales is a numbers game. We aren't going to get every job, but if we have enough leads and land a reasonable number, we will be profitable. The same is true in real estate--we have already submitted two offers and are looking for more to bid on. We won't get them all, but if we make solid offers our real estate gig will do well.
I've heard many contractors say that our profession makes us naturals to get into real estate. I think there is some truth in that. But I think what really prepares us is knowing our numbers.
Thursday, June 4, 2009
Twisting Like a Pretzel
A recent thread on a painting forum raised the issue of working on Sunday. I opposed the idea, stating that I desire to have a life and I’m not willing to turn into a pretzel to please my customers.
One responder stated his desire to be flexible and show the customer that he “will be there for the customer”. I emphatically disagree with this position. Not only does it convey the wrong idea to the customer, it also sets the contractor up for a nightmare.
I doubt that the poster literally meant that he would do anything to please the customer. So where does he draw the line? Apparently he is willing to give up his weekends and evenings. What else is he willing to give up? If he is willing to meet customers at 7 p.m., why not 8 p.m., or 9 p.m.? If he is willing to be there for them at 7, why not be there for them at 9 or any other time they choose?
Some may say that my questions are silly, that we have to draw the line somewhere. I agree that we must draw a line. I simply disagree where the line should be drawn, and who should draw it.
While I believe that we should exhibit some flexibility in dealing with customers, it should be on our terms. We should establish the type of business we want to own, and then operate on that standard. I choose to have a life in addition to my business. I do not want my business dominating my life and preventing me from enjoying other activities.
I will admit that there was a time I would do almost anything a customer requested. And I was miserable. My life was being dictated by the desires of others. And when I finally realized this and established set work hours, a funny thing happened—customers were generally accommodating. We occasionally lose a lead, but it is rather infrequent. Just as customers find a way to accommodate the cable guy, or the phone company, or a multitude of other service providers, they can find a way to accommodate the painting contractor.
One responder stated his desire to be flexible and show the customer that he “will be there for the customer”. I emphatically disagree with this position. Not only does it convey the wrong idea to the customer, it also sets the contractor up for a nightmare.
I doubt that the poster literally meant that he would do anything to please the customer. So where does he draw the line? Apparently he is willing to give up his weekends and evenings. What else is he willing to give up? If he is willing to meet customers at 7 p.m., why not 8 p.m., or 9 p.m.? If he is willing to be there for them at 7, why not be there for them at 9 or any other time they choose?
Some may say that my questions are silly, that we have to draw the line somewhere. I agree that we must draw a line. I simply disagree where the line should be drawn, and who should draw it.
While I believe that we should exhibit some flexibility in dealing with customers, it should be on our terms. We should establish the type of business we want to own, and then operate on that standard. I choose to have a life in addition to my business. I do not want my business dominating my life and preventing me from enjoying other activities.
I will admit that there was a time I would do almost anything a customer requested. And I was miserable. My life was being dictated by the desires of others. And when I finally realized this and established set work hours, a funny thing happened—customers were generally accommodating. We occasionally lose a lead, but it is rather infrequent. Just as customers find a way to accommodate the cable guy, or the phone company, or a multitude of other service providers, they can find a way to accommodate the painting contractor.
Friday, May 29, 2009
Brian’s Wonderful Landscaping Adventure
When I first purchased my home more than ten years ago, the yard had been grossly neglected for a long time. There were large patches of bare dirt, the soil was compacted, and various bedding plants were sprouting up in areas with no beds. In addition, I discovered landscaping stones buried throughout the yard—apparently a relic of some long lost civilization that had attempted some bizarre horticultural practices.
My task at first seemed a bit overwhelming. I knew that improving the condition of my soil would be a key to any long term success. I also knew that the eleven live oaks on my lot were going to limit where grass would grow, as well as the other types of landscaping I could plant.
I would like to say that my landscaping adventure went off without a hitch. But that wouldn’t be true. I killed more than a few plants, and spent countless hours hauling stones, planting shrubs, and laying sod. Much of my effort, particularly in the first few years, was good for little more than exercise.
For example, I had an area in the back yard measuring approximately 25’ by 25’ that remained a barren wasteland no matter how much sod I place on it. The combination of poor soil, lack of drainage, and filtered sunlight simply did not provide a good environment for grass. Several years ago I admitted the futility of my endeavor, and built a large deck. That was certainly one way to solve the problem.
The pride and joy of my landscaping is our pond, which is also a story of grand mistakes and joyous successes. At one time we had three ponds, which were interconnected by waterfalls and a stream. While it was nice to look at, and a constant source of delight, it was a maintenance nightmare. The stream would easily clog with debris, which would cause an overflow and the water level in the ponds would fall dangerously low. We eventually removed two of the ponds and the stream, and installed a disappearing fountain and a dozen azaleas in their stead.
Around the remaining pond we have two pittsoporums that have become larger than I ever imagined such plants could grow. Despite regular, and often severe, pruning, they easily stand 12 feet tall. They make a wonderful backdrop to our waterfall. The beds around the pond also contain ferns, some ground cover, and several Encore azaleas. It makes for a very relaxing environment.
My yard is now virtually filled with lush, green grass. The few remaining thin areas should fill in this summer. And my hibiscus are thriving now that they get full sun virtually all day long.
My gardening and landscaping adventure has been a fun and rewarding hobby, albeit one often filled with frustration. But the results have been worth the effort.
You may wonder what this has to do with paint contracting. My answer is this: My landscaping adventure has taken time to perfect. I developed systems—such as installing watering systems—to make my work easier. This all took patience, perseverance, and a focus on my end goal. And this is precisely what it takes to run a successful contracting business.
My task at first seemed a bit overwhelming. I knew that improving the condition of my soil would be a key to any long term success. I also knew that the eleven live oaks on my lot were going to limit where grass would grow, as well as the other types of landscaping I could plant.
I would like to say that my landscaping adventure went off without a hitch. But that wouldn’t be true. I killed more than a few plants, and spent countless hours hauling stones, planting shrubs, and laying sod. Much of my effort, particularly in the first few years, was good for little more than exercise.
For example, I had an area in the back yard measuring approximately 25’ by 25’ that remained a barren wasteland no matter how much sod I place on it. The combination of poor soil, lack of drainage, and filtered sunlight simply did not provide a good environment for grass. Several years ago I admitted the futility of my endeavor, and built a large deck. That was certainly one way to solve the problem.
The pride and joy of my landscaping is our pond, which is also a story of grand mistakes and joyous successes. At one time we had three ponds, which were interconnected by waterfalls and a stream. While it was nice to look at, and a constant source of delight, it was a maintenance nightmare. The stream would easily clog with debris, which would cause an overflow and the water level in the ponds would fall dangerously low. We eventually removed two of the ponds and the stream, and installed a disappearing fountain and a dozen azaleas in their stead.
Around the remaining pond we have two pittsoporums that have become larger than I ever imagined such plants could grow. Despite regular, and often severe, pruning, they easily stand 12 feet tall. They make a wonderful backdrop to our waterfall. The beds around the pond also contain ferns, some ground cover, and several Encore azaleas. It makes for a very relaxing environment.
My yard is now virtually filled with lush, green grass. The few remaining thin areas should fill in this summer. And my hibiscus are thriving now that they get full sun virtually all day long.
My gardening and landscaping adventure has been a fun and rewarding hobby, albeit one often filled with frustration. But the results have been worth the effort.
You may wonder what this has to do with paint contracting. My answer is this: My landscaping adventure has taken time to perfect. I developed systems—such as installing watering systems—to make my work easier. This all took patience, perseverance, and a focus on my end goal. And this is precisely what it takes to run a successful contracting business.
Tuesday, May 26, 2009
Kissing Butt to Get the Sale
Some time ago I read an interesting thread on a forum that shall remain nameless. Contractors were discussing various tactics for getting the sale, including “kissing butt”. One commented that he would do whatever it takes to land the job.
On the surface this might sound like a reasonable approach. Certainly we must take into consideration the customer’s needs, concerns, and values. But to mix metaphors, “kissing butt” is not skin deep.
I will let you imagine the literal meaning of the phrase. In practice it isn’t a pretty sight. In principle, it isn’t any better.
I compared this tactic to that of a prostitute—doing “whatever it takes” means just that. You will do anything the customer requests, no matter how unreasonable. (I seriously doubt that the poster meant this, but I take words for their actual meaning.) A prostitute will debase herself simply to get the job—in fact, debasement is her job.
A painting contractor who adopts this tactic becomes nothing more than a patsy. He allows the customer to dictate the terms of their relationship. His constant appeasement makes him a docile pawn, manipulated into satisfying whatever whim happens to strike the customer. And the more he does, the more he reinforces the customer’s power lust.
This is not to say that we should be bullies and give the customer a “take it or leave it” proposition. It does mean that we must seek a relationship that is mutually beneficial, not just in the short term, but also in the long term.
“Kissing butt” focuses on the short term. The contractor’s concern is on the immediate moment—landing this job now. In the process, he undermines his long term success. We need customers, but not any one particular customer. We need paint jobs, but we do not need any one particular job. In short, don’t kiss butt to get a job. You will wind up with something much nastier than egg on your face.
On the surface this might sound like a reasonable approach. Certainly we must take into consideration the customer’s needs, concerns, and values. But to mix metaphors, “kissing butt” is not skin deep.
I will let you imagine the literal meaning of the phrase. In practice it isn’t a pretty sight. In principle, it isn’t any better.
I compared this tactic to that of a prostitute—doing “whatever it takes” means just that. You will do anything the customer requests, no matter how unreasonable. (I seriously doubt that the poster meant this, but I take words for their actual meaning.) A prostitute will debase herself simply to get the job—in fact, debasement is her job.
A painting contractor who adopts this tactic becomes nothing more than a patsy. He allows the customer to dictate the terms of their relationship. His constant appeasement makes him a docile pawn, manipulated into satisfying whatever whim happens to strike the customer. And the more he does, the more he reinforces the customer’s power lust.
This is not to say that we should be bullies and give the customer a “take it or leave it” proposition. It does mean that we must seek a relationship that is mutually beneficial, not just in the short term, but also in the long term.
“Kissing butt” focuses on the short term. The contractor’s concern is on the immediate moment—landing this job now. In the process, he undermines his long term success. We need customers, but not any one particular customer. We need paint jobs, but we do not need any one particular job. In short, don’t kiss butt to get a job. You will wind up with something much nastier than egg on your face.
Saturday, May 23, 2009
With Help Like This...
One of the most common questions from new painting contractors is how to bid jobs. And there is no shortage of “experts” eager to share their “knowledge”. However, often that “knowledge” is inadequate, and sometimes it is downright wrong. For example, consider the advice offered here.
The first suggestion is: “Find out what your competitors are charging for the same service by having them come and do an estimate for you (I wouldn't tell them what you're up to, though).” This advice is wrong, both morally and practically.
Morally, this is dishonest. Such actions are misleading, waste the time of the competitors, and the information is gained under false pretenses.
Practically, the information gained is meaningless. What others charge does not tell us anything about what we should charge. This is a classic case of the blind leading the blind, or more precisely, the blind leading the dishonest.
Along the same lines is this little tidbit: “Going rate for painters is 29.00 if you roll and 31.00 an hour if you spray. I charge 25.00 hour but I roll. It keeps me in the ball game.”
Charging $25 an hour might “keep you in the ball game”, but what kind of game are you playing? Professional contracting is not a game—it is a business. If you treat it like a game, you will likely find yourself sitting on the bench.
The first suggestion is: “Find out what your competitors are charging for the same service by having them come and do an estimate for you (I wouldn't tell them what you're up to, though).” This advice is wrong, both morally and practically.
Morally, this is dishonest. Such actions are misleading, waste the time of the competitors, and the information is gained under false pretenses.
Practically, the information gained is meaningless. What others charge does not tell us anything about what we should charge. This is a classic case of the blind leading the blind, or more precisely, the blind leading the dishonest.
Along the same lines is this little tidbit: “Going rate for painters is 29.00 if you roll and 31.00 an hour if you spray. I charge 25.00 hour but I roll. It keeps me in the ball game.”
Charging $25 an hour might “keep you in the ball game”, but what kind of game are you playing? Professional contracting is not a game—it is a business. If you treat it like a game, you will likely find yourself sitting on the bench.
Saturday, May 2, 2009
Getting Out of the Office: An Update
Last year I wrote about getting out of the office--structuring my business so that I had more time for other pursuits. I am happy to report that I have largely been successful in accomplishing this goal.
To be honest, I cannot take complete credit for this. Our leads have declined, partially because of some reduced advertising and partially due to the economy. Regardless, my business requires much less effort than in previous years--often less than 10 hours a week.
So what am I doing with my time? I have been doing a great deal more writing. I have also been spending a fair amount of time working in my yard. Earlier this year I remodeled my dining room and laundry room.
I could certainly spend 40 to 50 hours a week working on my business. I choose not to. I make an income that is satisfactory, while having the time to pursue other interests. I have created a lifestyle business--that is, a business that allows me to live the lifestyle I desire. While more money is always welcome, it isn't all about the money. There are other factors to consider as well. Besides, some of my other interests are also producing income.
The reduced workload has allowed me to spend more time with my wife. Actually, I am with her a lot anyhow, since she works with me. But we are now spending time doing things that are more enjoyable. And she also has more time for pursuits that are of more interest to her.
A lifestyle business isn't for everyone. Many people have children to feed, college to finance, or other financial considerations that make a lifestyle business impractical. But when money is not the highest priority, such a business has a lot of benefits.
To be honest, I cannot take complete credit for this. Our leads have declined, partially because of some reduced advertising and partially due to the economy. Regardless, my business requires much less effort than in previous years--often less than 10 hours a week.
So what am I doing with my time? I have been doing a great deal more writing. I have also been spending a fair amount of time working in my yard. Earlier this year I remodeled my dining room and laundry room.
I could certainly spend 40 to 50 hours a week working on my business. I choose not to. I make an income that is satisfactory, while having the time to pursue other interests. I have created a lifestyle business--that is, a business that allows me to live the lifestyle I desire. While more money is always welcome, it isn't all about the money. There are other factors to consider as well. Besides, some of my other interests are also producing income.
The reduced workload has allowed me to spend more time with my wife. Actually, I am with her a lot anyhow, since she works with me. But we are now spending time doing things that are more enjoyable. And she also has more time for pursuits that are of more interest to her.
A lifestyle business isn't for everyone. Many people have children to feed, college to finance, or other financial considerations that make a lifestyle business impractical. But when money is not the highest priority, such a business has a lot of benefits.
Friday, April 17, 2009
Re-Inventing the Wheel
I have been thinking of investing in rental real estate, and I recently posted on a contractor forum seeking input from anyone who has previously done so. The response was quite interesting.
I was quickly told about the problems I would face, such as tenants who don’t pay, destroy the property, or both. I pointed out that with the proper systems in place, such problems could largely be avoided. But this did not dissuade the critics.
I was struck by how similar this is to other things I frequently hear from painting contractors: door hangers don’t work, yellow pages don’t work, customers are cheap, nobody appreciates quality, illegals are stealing all of the work, yada, yada, yada. I call these people the nay-sayers.
And then this morning I received the following Thought of the Day from the Napoleon Hill Foundation:
Certainly there are challenges in rental real estate, just as there are challenges in contracting. So? If it were easy, everyone would do it. The challenges aren’t the issue here—how we deal with those challenges is.
The nay-sayers continue to insist that painting contractors can’t make money, despite an abundance of evidence to the contrary. They see each obstacle as an impenetrable wall that halts any progress. And when someone points out evidence that contradicts their conclusions, they respond with more excuses: that may be true in large cities but not in rural areas, I don’t want to be a high pressure salesman, I won’t compromise on my quality, yada, yada, yada.
Whether it is real estate or contracting, the nay-sayers are determined to stick to their conclusions, come hell or high water. Their situation or market is completely unique, and sound business principles simply do not apply. This of course, is simply not true.
Whether they realize it or not, the nay-sayers are making an admission: they lack the skills, ambition, perseverance, or some other characteristic necessary to overcome the challenges. The crucial fact that the nay-sayers overlook is that, in most situations, others have already overcome the challenges.
A wise man learns from his mistakes. A really smart man learns from the mistakes of others. In other words, don’t try to re-invent the wheel. Learn from those who have accomplished the goals you seek. Find a mentor and listen to his advice.
This does not mean blind obedience. You must judge for yourself the prudence of each idea. But it can be a huge waste of time, money, and energy to try to discover each idea on your own. This applies to real estate, and it applies to paint contracting.
I was quickly told about the problems I would face, such as tenants who don’t pay, destroy the property, or both. I pointed out that with the proper systems in place, such problems could largely be avoided. But this did not dissuade the critics.
I was struck by how similar this is to other things I frequently hear from painting contractors: door hangers don’t work, yellow pages don’t work, customers are cheap, nobody appreciates quality, illegals are stealing all of the work, yada, yada, yada. I call these people the nay-sayers.
And then this morning I received the following Thought of the Day from the Napoleon Hill Foundation:
A POSITIVE MIND FINDS A WAY IT CAN BE DONE. A NEGATIVE MIND LOOKS FOR ALL THE WAYS IT CAN’T BE DONE.
Certainly there are challenges in rental real estate, just as there are challenges in contracting. So? If it were easy, everyone would do it. The challenges aren’t the issue here—how we deal with those challenges is.
The nay-sayers continue to insist that painting contractors can’t make money, despite an abundance of evidence to the contrary. They see each obstacle as an impenetrable wall that halts any progress. And when someone points out evidence that contradicts their conclusions, they respond with more excuses: that may be true in large cities but not in rural areas, I don’t want to be a high pressure salesman, I won’t compromise on my quality, yada, yada, yada.
Whether it is real estate or contracting, the nay-sayers are determined to stick to their conclusions, come hell or high water. Their situation or market is completely unique, and sound business principles simply do not apply. This of course, is simply not true.
Whether they realize it or not, the nay-sayers are making an admission: they lack the skills, ambition, perseverance, or some other characteristic necessary to overcome the challenges. The crucial fact that the nay-sayers overlook is that, in most situations, others have already overcome the challenges.
A wise man learns from his mistakes. A really smart man learns from the mistakes of others. In other words, don’t try to re-invent the wheel. Learn from those who have accomplished the goals you seek. Find a mentor and listen to his advice.
This does not mean blind obedience. You must judge for yourself the prudence of each idea. But it can be a huge waste of time, money, and energy to try to discover each idea on your own. This applies to real estate, and it applies to paint contracting.
Friday, April 10, 2009
Kissing Butt as a Sales Tactic
Some painters seem to think that effective sales means kissing the customer’s butt, gushing insincere platitudes, and similar types of fakery. This is no different from the proverbial used car salesman. Both are a form of dishonesty and manipulation.
The implication is that the truth is somehow one’s enemy. But the fact is, the truth is always our ally. The truth provides illumination and understanding. Dishonesty brings about destruction. The truth may be unpleasant, but burying one’s head in the sand or believing fantasies will ultimately be far more so.
This does not mean that we must be uncivil and speak every thought that enters our brain. Speaking the truth means not faking reality. It doesn’t mean being unnecessarily rude.
Effective sales is about communication and education. This means discovering the customer’s needs and desires, and then communicating how your company will satisfy those values. This requires a commitment to what is true, not what you think the customer wants to hear. Stating that the putrid green color the customer selected is perfect for her dining room ceiling is not helping anyone if you truly think it’s the wrong color.
Customers hire us for our expertise, not because they want a lap dog. If we think that the customer is making a bad decision, we have a moral responsibility to say so—and provide the reasons for our opinion. Most of the time this is incredibly effective as a sales strategy. It tells the customer that we are truly interested in what is best for her. Most people appreciate the honesty.
Again, there are civil ways to put your foot down. Honesty does not require that we insult the customer’s intelligence or berate them. Simply state the facts—you don’ think the color is appropriate because it clashes with her furniture and flooring (or whatever the actual reason is).
Too many contractors think that sales is all about manipulating people to make a purchasing decision that they don’t want to make. They see the sales process as a contest of wills between the contractor and the customer, in which each is trying to screw the other. But if we view the sales process as a mutually beneficial exchange (which it is), both our attitude and our results will be much more positive.
The implication is that the truth is somehow one’s enemy. But the fact is, the truth is always our ally. The truth provides illumination and understanding. Dishonesty brings about destruction. The truth may be unpleasant, but burying one’s head in the sand or believing fantasies will ultimately be far more so.
This does not mean that we must be uncivil and speak every thought that enters our brain. Speaking the truth means not faking reality. It doesn’t mean being unnecessarily rude.
Effective sales is about communication and education. This means discovering the customer’s needs and desires, and then communicating how your company will satisfy those values. This requires a commitment to what is true, not what you think the customer wants to hear. Stating that the putrid green color the customer selected is perfect for her dining room ceiling is not helping anyone if you truly think it’s the wrong color.
Customers hire us for our expertise, not because they want a lap dog. If we think that the customer is making a bad decision, we have a moral responsibility to say so—and provide the reasons for our opinion. Most of the time this is incredibly effective as a sales strategy. It tells the customer that we are truly interested in what is best for her. Most people appreciate the honesty.
Again, there are civil ways to put your foot down. Honesty does not require that we insult the customer’s intelligence or berate them. Simply state the facts—you don’ think the color is appropriate because it clashes with her furniture and flooring (or whatever the actual reason is).
Too many contractors think that sales is all about manipulating people to make a purchasing decision that they don’t want to make. They see the sales process as a contest of wills between the contractor and the customer, in which each is trying to screw the other. But if we view the sales process as a mutually beneficial exchange (which it is), both our attitude and our results will be much more positive.
Friday, March 27, 2009
Tightening the Belt
Tough times call for tough decisions, and cutting overhead can be one of the toughest decisions. Operating a business requires certain overhead costs, such as phones, equipment maintenance, advertising, and insurance. If we eliminate, or greatly reduce some of these expenses, we make it increasingly difficult to stay in business.
This can seem like a horrible Catch-22 situation. If we cut these costs, we take significant business risks. If we don’t cut these costs, we risk facing severe cash flow problems. What is a contractor to do?
Now, more than ever, knowing your numbers is crucial. Understanding your cost structure and selling at the right price—that is, a price that is profitable—is the first step. If you aren’t doing these things, almost nothing else matters.
There is no simple answer to this dilemma. Each contractor must assess his particular situation in the context of his business and goals. But it is important to keep long term goals in mind when doing so. For example, saving a few dollars today on advertising may be disastrous in the long term.
The recession isn’t limited to contractor—other businesses are also slowing down. This can be an opportunity to negotiate better rates on advertising, phone service, and other overhead items. As an example, we recently switched our phone service at a savings of more than $150 per month.
If you find yourself needing to trim your overhead, examine your financial statements closely—year to year comparisons can be particularly helpful. They can show where expenses have risen most significantly. Compute the ratio of each expense to revenues—raw numbers are not always helpful when revenues fluctuate. Most of all, develop a plan for dealing with your particular financial situation.
This can seem like a horrible Catch-22 situation. If we cut these costs, we take significant business risks. If we don’t cut these costs, we risk facing severe cash flow problems. What is a contractor to do?
Now, more than ever, knowing your numbers is crucial. Understanding your cost structure and selling at the right price—that is, a price that is profitable—is the first step. If you aren’t doing these things, almost nothing else matters.
There is no simple answer to this dilemma. Each contractor must assess his particular situation in the context of his business and goals. But it is important to keep long term goals in mind when doing so. For example, saving a few dollars today on advertising may be disastrous in the long term.
The recession isn’t limited to contractor—other businesses are also slowing down. This can be an opportunity to negotiate better rates on advertising, phone service, and other overhead items. As an example, we recently switched our phone service at a savings of more than $150 per month.
If you find yourself needing to trim your overhead, examine your financial statements closely—year to year comparisons can be particularly helpful. They can show where expenses have risen most significantly. Compute the ratio of each expense to revenues—raw numbers are not always helpful when revenues fluctuate. Most of all, develop a plan for dealing with your particular financial situation.
Tuesday, March 17, 2009
Cash and Spending
If you pay much attention to the media, you will quickly "learn" that many of our economic problems are being caused by consumers spending less. Less consumer spending, the argument goes, means less demand for goods and services. According to this thinking, stimulating spending--in either the private or public spending--will get the economy rolling again. In other words, we need more spending. However, even though the federal government is pumping trillions of dollars into the economy, much of the money is being used to improve balance sheets--that is, saved.
There are several errors in thinking that consumer spending drives the economy. First, it simply isn't true. Say's Law states that supply creates demand. An increase in production results in an increase in demand. Or to put it differently, consumption cannot occur without production.
Another error is that savings are spent. If you put $100 in the bank, that money is subsequently loaned to businesses or individuals. They then spend the money, either on expanding production (in the case of business) or for consumption (in the case of individuals).
As owners of small businesses, we will certainly feel the pinch during this recession. Consumers are spending less, which will translate to fewer leads and less work. If we listen to many of the "experts" we should not be saving money or paying off debt--we should be spending so as to stimulate the economy. But this could be extremely foolish, and ultimately destructive to many individuals.
It is always wise to spend less than you make, to save and invest. That doesn't change when the economy slows.
There are several errors in thinking that consumer spending drives the economy. First, it simply isn't true. Say's Law states that supply creates demand. An increase in production results in an increase in demand. Or to put it differently, consumption cannot occur without production.
Another error is that savings are spent. If you put $100 in the bank, that money is subsequently loaned to businesses or individuals. They then spend the money, either on expanding production (in the case of business) or for consumption (in the case of individuals).
As owners of small businesses, we will certainly feel the pinch during this recession. Consumers are spending less, which will translate to fewer leads and less work. If we listen to many of the "experts" we should not be saving money or paying off debt--we should be spending so as to stimulate the economy. But this could be extremely foolish, and ultimately destructive to many individuals.
It is always wise to spend less than you make, to save and invest. That doesn't change when the economy slows.
Monday, March 2, 2009
Speedy Gonzalez
A lot of painters like to brag about how fast they can paint. This would be great if they were in the Painting Olympics, but operating a paint contracting company is not about speed. Or at least is shouldn't be.
Invariably such discussions focus on a small project, like a 10' x 10' room, or a single door. While it may be possible to paint a single room or a single door in an impressive time, this is irrelevant when it comes to estimating a job in the real world.
Let us say that you can paint that 10' x 10' room in 2 hours (actual paint application time) and so you use a production rate of 160 square (320 square feet/ 2) feet per hour for painting walls. If all you ever do is paint 1 10' x 10' room, this might work out. But how many of us operate a business that does nothing but single 10' x 10' rooms?
Most people I know tend to get tired as they do physical labor. Maybe not exhausted, but they do fatigue. And with fatigue our production slows. While we may be able to paint the first room of the day in 2 hours, it may take 2.5 hours to paint the third or fourth room of the day. In other words, our production rates go down.
We must also factor in set up, clean up, moving equipment, and various other tasks. Certainly we could account for all of these separately. But why? Why add 6 or 8 or 10 other line items to your estimate when these items are involved every time you paint a room?
For example, you must lay down a drop cloth, you must remove hardware/ switch plate covers, you must set up a ladder, etc. each time you paint a room. You must clean your brush and roller at the end of the day. All of these tasks are predictable--in both their occurrence and the time they take. Using these tasks as a separate line item when calculating your price is essentially a waste of time. Include them in your production rates.
When we factor in all of these variables, the time to actually paint a room increases significantly. On paper, if someone can paint that 10' x 10' room in 2 hours, he should be able to paint 4 of them in an 8-hour day. But it ain't going to happen. He will be lucky to get 3 rooms painted, which means his actual production rate is going to be 120 square feet per hour. That is a difference of 25%, which means you would be undercharging by 25%.
When calculating production rates, do not use a single, small project as your basis. You will wind up with numbers that might seem reasonable, but simply won't reflect reality. Unless of course, you truly are Speedy Gonzalez.
Invariably such discussions focus on a small project, like a 10' x 10' room, or a single door. While it may be possible to paint a single room or a single door in an impressive time, this is irrelevant when it comes to estimating a job in the real world.
Let us say that you can paint that 10' x 10' room in 2 hours (actual paint application time) and so you use a production rate of 160 square (320 square feet/ 2) feet per hour for painting walls. If all you ever do is paint 1 10' x 10' room, this might work out. But how many of us operate a business that does nothing but single 10' x 10' rooms?
Most people I know tend to get tired as they do physical labor. Maybe not exhausted, but they do fatigue. And with fatigue our production slows. While we may be able to paint the first room of the day in 2 hours, it may take 2.5 hours to paint the third or fourth room of the day. In other words, our production rates go down.
We must also factor in set up, clean up, moving equipment, and various other tasks. Certainly we could account for all of these separately. But why? Why add 6 or 8 or 10 other line items to your estimate when these items are involved every time you paint a room?
For example, you must lay down a drop cloth, you must remove hardware/ switch plate covers, you must set up a ladder, etc. each time you paint a room. You must clean your brush and roller at the end of the day. All of these tasks are predictable--in both their occurrence and the time they take. Using these tasks as a separate line item when calculating your price is essentially a waste of time. Include them in your production rates.
When we factor in all of these variables, the time to actually paint a room increases significantly. On paper, if someone can paint that 10' x 10' room in 2 hours, he should be able to paint 4 of them in an 8-hour day. But it ain't going to happen. He will be lucky to get 3 rooms painted, which means his actual production rate is going to be 120 square feet per hour. That is a difference of 25%, which means you would be undercharging by 25%.
When calculating production rates, do not use a single, small project as your basis. You will wind up with numbers that might seem reasonable, but simply won't reflect reality. Unless of course, you truly are Speedy Gonzalez.
Wednesday, February 18, 2009
A Virtual Mayoral Campaign
For the past nine months I have written for two blogs. This is one. The other, Live Oaks, is my true passion.
Since I was a teenager I have wanted to be a writer. The vagaries of life took me in a different direction for a number of years, but I have returned to that dream. Next month I will have an article published in The Objective Standard, and I am working on other writing opportunities.
In the meantime, I am launching a virtual campaign to become Mayor of Houston. I am not a literal candidate--I have no desire or expectation to be elected. My goal is to influence the debate, a goal that I have successfully achieved in Houston on multiple occasions, as well as in other cities.
You can read my announcement here and my Statement of Principles here.
Since I was a teenager I have wanted to be a writer. The vagaries of life took me in a different direction for a number of years, but I have returned to that dream. Next month I will have an article published in The Objective Standard, and I am working on other writing opportunities.
In the meantime, I am launching a virtual campaign to become Mayor of Houston. I am not a literal candidate--I have no desire or expectation to be elected. My goal is to influence the debate, a goal that I have successfully achieved in Houston on multiple occasions, as well as in other cities.
You can read my announcement here and my Statement of Principles here.
Friday, January 30, 2009
Fear
It is often said that fear is False Evidence Appearing Real. While this is often the case, there is more to fear than that.
Fear is an emotional response to a perceived, unknown threat. For example, if you hear a loud knock on your door in the middle of the night, you might experience fear—you perceive a threat because you do not know who is at the door. However, if you are expecting someone, the same noise will not evoke a feeling of fear.
The owners of paint contracting companies are often reluctant to make changes in their business because of fear. They perceive some threat—perhaps failure—and the consequences of the change are unknown. This isn’t necessarily irrational, or making false evidence appear real. The chance of failure does exist, and there are unknowns.
Overcoming our fear is necessary if we are to move forward. There are several key steps in this process.
The first is to identify the actual facts. Are there as many unknowns as we think? Have we made similar changes before? Can we learn from others who have made similar changes? Answering these questions can help us realize that the unknowns are not as significant as we think. We may actually know more about the situation than first appears.
The second step is to identify what information we can obtain to reduce the unknowns. This may involve soliciting the input from someone who has made a similar change or doing research. Knowledge is certainly an ally, as it helps eliminate or reduce unknowns.
Armed with this knowledge, we can then develop a plan that will reduce risks and address any remaining unknowns. The plan allows us to think through the change, identify potential obstacles, and have a specific course of action.
The process of overcoming fear is designed to reduce the perception of an unknown threat. As we gather more information, the unknowns decrease. As our knowledge expands, the perceived threat is reduced. In combination, our fear will be greatly diminished and we will be prepared to move forward.
Fear is an emotional response to a perceived, unknown threat. For example, if you hear a loud knock on your door in the middle of the night, you might experience fear—you perceive a threat because you do not know who is at the door. However, if you are expecting someone, the same noise will not evoke a feeling of fear.
The owners of paint contracting companies are often reluctant to make changes in their business because of fear. They perceive some threat—perhaps failure—and the consequences of the change are unknown. This isn’t necessarily irrational, or making false evidence appear real. The chance of failure does exist, and there are unknowns.
Overcoming our fear is necessary if we are to move forward. There are several key steps in this process.
The first is to identify the actual facts. Are there as many unknowns as we think? Have we made similar changes before? Can we learn from others who have made similar changes? Answering these questions can help us realize that the unknowns are not as significant as we think. We may actually know more about the situation than first appears.
The second step is to identify what information we can obtain to reduce the unknowns. This may involve soliciting the input from someone who has made a similar change or doing research. Knowledge is certainly an ally, as it helps eliminate or reduce unknowns.
Armed with this knowledge, we can then develop a plan that will reduce risks and address any remaining unknowns. The plan allows us to think through the change, identify potential obstacles, and have a specific course of action.
The process of overcoming fear is designed to reduce the perception of an unknown threat. As we gather more information, the unknowns decrease. As our knowledge expands, the perceived threat is reduced. In combination, our fear will be greatly diminished and we will be prepared to move forward.
Monday, January 26, 2009
The Paint Police
As the owner of a paint contracting company, I have an eye for spotting poor paint jobs. Almost without thinking about it, any time I enter someplace I am inspecting the paint job. And often, what I see is offensive to anyone with a semblance of standards.
I see brush strokes going in five different directions. I see touch up that doesn't match. I see lines that wiggle more than a worm on hot pavement. I see application problems and preparation problems. But most of all, I see a serious threat to the well-being of anyone who enters that building. We need a law to protect people from shoddy paint jobs. We need the Paint Police.
You may think that this is absurd. You may think that I am being sarcastic. You would be correct on both counts. But this is no less absurd than many laws that are proposed. And I can make a good case to support such a law.
Paint is composed of hundreds of chemicals, including volatile organic compounds, titanium dioxide, resins, and some other things I can't even spell. Some of these chemicals can be quite dangerous, and when combined they become a virtual Chernobyl. For example, if you ingested one ounce of 100% pure acrylic latex paint, you would experience severe stomach problems.
Few people realize that paint off gasses for a prolonged period--sometimes for years. So, while you may not saddle up to the bar and order a shot of SuperPaint on the rocks, you could be ingesting toxic fumes anytime you are in the proximity of paint.
Look around you. I bet you can spot a lot of things that have paint on them-- your walls, the woodwork, your furniture, and perhaps your shoes. (A little known fact is that most leather shoes are painted in Brazilian sweat shops by artisans who make cheap banana leaves look like expensive leather. But that is a different story.) All of these products are emitting toxic chemicals that are slowly destroying your liver. And the problem gets even worse if you start gnawing on one of these items.
You are probably thinking that you never gnaw on your furniture, your walls, or your shoes. And if you don't then I give you a lot of credit for your self-control. You see, paint manufacturers add secret ingredients to their products that subconsciously create strong gnawing urges in humans. During WWII, government scientists worked with the paint companies to find ways to influence enemy behavior by adding certain ingredients into paint, and then Allied bombers dropped tons of paint on villages throughout Europe. The result was very colorful. But I digress.
One of the primary problems with paint is poor adhesion. If the paint doesn't stick to the surface to which it is applied, it will come off. The result is peeling, flaking paint. Because of the secret, enticing ingredients in paint, humans will unknowingly ingest it. This often occurs in the middle of the night. This phenomenon has been documented in numerous B-grade movies.
Many people mistakenly believe that a paint job just requires picking a color and slapping some paint on the wall. Au contraire. There is much more to a high quality, long lasting job. Things such as picking the proper roller nap, using the right primers, and drinking an approved beer. Unfortunately, there are many people out there who are applying paint and don't know the difference between an eggshell and a satin. These people pose a tremendous public health risk.
It is time that we do something about it, and given the aroma of change that is in the air, this is the perfect time to do it. We need the federal government to enact sweeping regulations to insure that all paint is applied properly. We need to crack down on those who denigrate our trade, and do other things that I don't like. I urge you to write your Congressman and Senators in support of this proposal.
And while you are at it, you might suggest that they make me the Paint Czar.
I see brush strokes going in five different directions. I see touch up that doesn't match. I see lines that wiggle more than a worm on hot pavement. I see application problems and preparation problems. But most of all, I see a serious threat to the well-being of anyone who enters that building. We need a law to protect people from shoddy paint jobs. We need the Paint Police.
You may think that this is absurd. You may think that I am being sarcastic. You would be correct on both counts. But this is no less absurd than many laws that are proposed. And I can make a good case to support such a law.
Paint is composed of hundreds of chemicals, including volatile organic compounds, titanium dioxide, resins, and some other things I can't even spell. Some of these chemicals can be quite dangerous, and when combined they become a virtual Chernobyl. For example, if you ingested one ounce of 100% pure acrylic latex paint, you would experience severe stomach problems.
Few people realize that paint off gasses for a prolonged period--sometimes for years. So, while you may not saddle up to the bar and order a shot of SuperPaint on the rocks, you could be ingesting toxic fumes anytime you are in the proximity of paint.
Look around you. I bet you can spot a lot of things that have paint on them-- your walls, the woodwork, your furniture, and perhaps your shoes. (A little known fact is that most leather shoes are painted in Brazilian sweat shops by artisans who make cheap banana leaves look like expensive leather. But that is a different story.) All of these products are emitting toxic chemicals that are slowly destroying your liver. And the problem gets even worse if you start gnawing on one of these items.
You are probably thinking that you never gnaw on your furniture, your walls, or your shoes. And if you don't then I give you a lot of credit for your self-control. You see, paint manufacturers add secret ingredients to their products that subconsciously create strong gnawing urges in humans. During WWII, government scientists worked with the paint companies to find ways to influence enemy behavior by adding certain ingredients into paint, and then Allied bombers dropped tons of paint on villages throughout Europe. The result was very colorful. But I digress.
One of the primary problems with paint is poor adhesion. If the paint doesn't stick to the surface to which it is applied, it will come off. The result is peeling, flaking paint. Because of the secret, enticing ingredients in paint, humans will unknowingly ingest it. This often occurs in the middle of the night. This phenomenon has been documented in numerous B-grade movies.
Many people mistakenly believe that a paint job just requires picking a color and slapping some paint on the wall. Au contraire. There is much more to a high quality, long lasting job. Things such as picking the proper roller nap, using the right primers, and drinking an approved beer. Unfortunately, there are many people out there who are applying paint and don't know the difference between an eggshell and a satin. These people pose a tremendous public health risk.
It is time that we do something about it, and given the aroma of change that is in the air, this is the perfect time to do it. We need the federal government to enact sweeping regulations to insure that all paint is applied properly. We need to crack down on those who denigrate our trade, and do other things that I don't like. I urge you to write your Congressman and Senators in support of this proposal.
And while you are at it, you might suggest that they make me the Paint Czar.
Wednesday, January 14, 2009
Happiness Journal
This could be a rough year for many painting contractors. With construction slowing and home owners holding on to their money more tightly, leads are likely to slow. Customers will likely be more price conscious than ever. Since "anyone can paint", we might see an increase in competition.
It could become very easy to get stressed out and focus on all of the negatives. This can feed on itself-- often when we focus on the negatives we stop being pro-active and wallow in our misery. Focusing on the negatives can blind us to the many positives in our life.
In late December somebody turned me on to the idea of a Happiness Journal through HBL. The idea is pretty simple-- each day you write down 3 things that made you happy or brought you pleasure. These don't need to be huge events-- it could be as simple as a good meal or hearing your favorite song. The idea is to spend a few minutes reflecting on the positive.
This can have a huge impact psychologically. It gets us to recognize the good things that we have in our life. It reminds us that there are positives. Just a few minutes a day thinking about what makes us happy can make a huge difference, and it can change our perspective on the problems.
Running a business can be difficult at times. And with the economy the way it is, it could get worse. Anything we can do to keep a positive outlook helps. As the owner of a business, it can sometimes seem like the weight of the world is upon our shoulders. Thinking about the positive can help lift some of that weight.
I started doing a Happiness Journal on January 1. I tend to be optimistic and focus on the positive, but I’ve still found it both fun and illuminating. Some days I struggle to select only 3 items—I have many more to choose from. Other days, finding 3 items has been a little more difficult. For example, I came down with a cold on New Year’s Eve, which made the entire weekend a bit of a downer and less active than normal. But just thinking about what I had enjoyed during the day brightened my spirits.
Life is full of ups and downs. We don't hit a home run everyday. But we don't strike out every time at the plate either. Sometimes a series of singles are just are rewarding and meaningful as a grand slam. After all, a grand slam isn't possible without three other runners getting on base.
My wife is also keeping a Happiness Journal, and we intend to share and discuss the items we have listed. This will be a lot of fun in a number of ways. It will be an opportunity for us to share our thoughts and discuss positive events. We will probably learn a few things about one another.
I certainly don’t mean to imply that we should ignore our problems or pretend that everything is fine and dandy. But at the same time, we shouldn’t ignore the good things and pretend that our world is falling apart. A Happiness Journal helps keep the proper perspective, and that may be more important than ever in the coming year.
It could become very easy to get stressed out and focus on all of the negatives. This can feed on itself-- often when we focus on the negatives we stop being pro-active and wallow in our misery. Focusing on the negatives can blind us to the many positives in our life.
In late December somebody turned me on to the idea of a Happiness Journal through HBL. The idea is pretty simple-- each day you write down 3 things that made you happy or brought you pleasure. These don't need to be huge events-- it could be as simple as a good meal or hearing your favorite song. The idea is to spend a few minutes reflecting on the positive.
This can have a huge impact psychologically. It gets us to recognize the good things that we have in our life. It reminds us that there are positives. Just a few minutes a day thinking about what makes us happy can make a huge difference, and it can change our perspective on the problems.
Running a business can be difficult at times. And with the economy the way it is, it could get worse. Anything we can do to keep a positive outlook helps. As the owner of a business, it can sometimes seem like the weight of the world is upon our shoulders. Thinking about the positive can help lift some of that weight.
I started doing a Happiness Journal on January 1. I tend to be optimistic and focus on the positive, but I’ve still found it both fun and illuminating. Some days I struggle to select only 3 items—I have many more to choose from. Other days, finding 3 items has been a little more difficult. For example, I came down with a cold on New Year’s Eve, which made the entire weekend a bit of a downer and less active than normal. But just thinking about what I had enjoyed during the day brightened my spirits.
Life is full of ups and downs. We don't hit a home run everyday. But we don't strike out every time at the plate either. Sometimes a series of singles are just are rewarding and meaningful as a grand slam. After all, a grand slam isn't possible without three other runners getting on base.
My wife is also keeping a Happiness Journal, and we intend to share and discuss the items we have listed. This will be a lot of fun in a number of ways. It will be an opportunity for us to share our thoughts and discuss positive events. We will probably learn a few things about one another.
I certainly don’t mean to imply that we should ignore our problems or pretend that everything is fine and dandy. But at the same time, we shouldn’t ignore the good things and pretend that our world is falling apart. A Happiness Journal helps keep the proper perspective, and that may be more important than ever in the coming year.
Monday, January 5, 2009
Quick Roundup 2
The Power of Pausing
Good sales skills begin with good listening skills. Brian Tracy suggests pausing before you respond to your customers. Pausing has three benefits
I've seen a lot of contractors (and other people as well) who are so eager to share what is on their mind that they completely ignore what the customer is saying. The customer will realize this, and it will greatly undermine their confidence in you. Communication is a two-way street. Do your part by listening carefully and being certain you understand what you are hearing.
Price vs. Service
Many companies are lowering prices in order to retain customers. Bill Hogg points out that Ambercrombie and Fitch aren't. They plan to retain their brand--which is not based on price. Many contractors are going to be tempted to cut their prices during this tough economic times. But what will they do when the market recovers and their customers expect the lower prices? A better strategy is to improve service, which might even permit you to increase prices. Don't view the economy as an obstacle; view it as an opportunity.
Make Their Phone Ring
John Jantsch suggest a simple, yet effective way to generate leads. Rather than sitting around waiting for the phone to ring, make your customer's phone ring--give them a call and thank them for their past business. Discuss ways you can help them now. Ask what you can do better. Most importantly, remind them you want their business.
Low-Cost Marketing Ideas
Maria Garcia offers seven low-cost marketing ideas, including writing articles and networking. If your advertising budget is feeling the pinch, some of these ideas will get the word out without breaking the bank.
Good sales skills begin with good listening skills. Brian Tracy suggests pausing before you respond to your customers. Pausing has three benefits
The first is that you avoid the risk of interrupting the prospect if he or she has just stopped to gather his or her thoughts. Remember, your primary job in the sales conversation is to build and maintain a high level of trust, and listening builds trust.
The second benefit of pausing is that your silence tells the prospect that you are giving careful consideration to what he or she has just said. By carefully considering the other person's words, you are paying him or her a compliment.
The third benefit of pausing before replying is that you will actually hear and understand the prospect better if you give his or her words a few seconds to soak into your mind.
I've seen a lot of contractors (and other people as well) who are so eager to share what is on their mind that they completely ignore what the customer is saying. The customer will realize this, and it will greatly undermine their confidence in you. Communication is a two-way street. Do your part by listening carefully and being certain you understand what you are hearing.
Price vs. Service
Many companies are lowering prices in order to retain customers. Bill Hogg points out that Ambercrombie and Fitch aren't. They plan to retain their brand--which is not based on price. Many contractors are going to be tempted to cut their prices during this tough economic times. But what will they do when the market recovers and their customers expect the lower prices? A better strategy is to improve service, which might even permit you to increase prices. Don't view the economy as an obstacle; view it as an opportunity.
Make Their Phone Ring
John Jantsch suggest a simple, yet effective way to generate leads. Rather than sitting around waiting for the phone to ring, make your customer's phone ring--give them a call and thank them for their past business. Discuss ways you can help them now. Ask what you can do better. Most importantly, remind them you want their business.
Low-Cost Marketing Ideas
Maria Garcia offers seven low-cost marketing ideas, including writing articles and networking. If your advertising budget is feeling the pinch, some of these ideas will get the word out without breaking the bank.
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