Here is the link to the interview (please read article first)
http://www.youtube.com/watch?v=ZpwYZNycZdo
Like it or not, our industry is dominated by national assembly companies (NAC’s). Do you consider the NAC’s your enemy? If so, is it ever ok to work for them?
If you are an NAC, do you consider the tech that runs his or her own assembly business “your” enemy? If so, do you have any techs with their own assembly business working for you?
If your mentality is considering a resource or competition as your enemy, you will never get anywhere in today’s world and that goes for both parties! People becoming more Internet savvy everyday and you better keep up.
Our industry (in its present state) has been around for a very long time, and I am not sure it is going to change anytime soon. The techs have issues with the NAC’s and the NAC’s have issues with and problems keeping good techs.
Some NAC’s claim that the tech needs to take the bad with the good; you may be wondering what does that mean. The good is a job that you can drive to within twenty minutes or so. The bad means if you are dispatched a job out of your area you need to take it or risk the NAC developing an attitude with you. However, when you factor in extended travel and one low paying job… the bad is just not worth it.
The NAC’s are the ones that need to take the bad with the good. What that means is, if there is a job out of a techs area, the NAC may need to payout twice or possibly more of what the job pays to ultimately keep the client happy. How many of you have refused to do a job because it was just too far away? How many NAC’s (do you know) lost accounts and went out of business because of this scenario?
If there are three or four of similar low paying jobs that are a long distance and in the same area from where the tech starts, it’s more likely the tech will make the trip, but that rarely happens and when it does, the NAC needs to “attempt” hire someone in that area.
Another issue for the NAC’s is they think the tech should only get a certain percentage of the job. Granted, the NAC’s have over head, but I think they forget (or don’t care) about the techs overhead. For that matter I don’t think some techs consider overhead at all, not even their own.
I can’t determine what any tech is worth, that is up to the individual, but a tech working for any NAC should be making at least $25 per hour for their work (including the drive time).
All independent business owners should be somewhere in the range of forty to sixty dollars an hour or more depending on there company size. WHY??? “I believe” the tech has more overhead and the percentage ratio of profit is much lower for the tech than any NAC.
A tech (as a contractor) pays for his or her own gas, vehicle maintenance, insurance (business and vehicle), licenses, yes tech, read your contract…you are responsible for any local license requirements but I do believe that could be challenged and the NAC’s could find themselves in deep trouble with local municipalities; the tech also pays for their own tools, work clothes, cell phone, Internet connection, office supplies and that list goes on.
If you contract with one of the NAC’s, you “are” in business for yourself; and if you understand that and are not pursuing work outside the NAC you are cheating yourself.
If you are a contractor, and go after more jobs than the NAC you contract with dispatches to you, there may be a few other things you need to take into consideration that the NAC’s do not. Already mentioned… licenses, some municipalities require a contractor’s license to install products such as basketball goals. Then there are the dreaded taxes, when the store they contract with collects for services they should be collecting sales tax. That’s right; some states require businesses to collect sales taxes for consumer services, even assembling products.
What it all comes down to is the independent and NAC’s need to learn to work with one and other until the industry is able to figure out a way for us all to make money and get along…
Right! Like that’s going to happen
The battles rage on…
Mike Mehrle
http://TheSavvyTech.com
614-218-1861
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The Internet has been around for a long time. I’ve been playing around on it since the mid 70’s and can remember 8-bit processors and dial-up speeds that only displayed text. I think it was about 1983 when we started seeing the 286 processor. Broadband Internet didn’t become widely available until late 2001. At that time I thought, WOW “can it get better than this”… well it did.
Today we have computers and Internet connection speeds that can stream live video from almost anyone’s desktop and in some cases a data phone… again, WOW!!!
As it goes with that kind of power, the only sources that had it was the network media broadcasting over air. Within the last few years or so the Internet has taken over as the choice for consumers to find products or services.
Not long ago, newspapers were a great choice to advertise any business. But as it goes today, how many of you actually take time to read the newspaper and much less subscribe to one?
As for the phone books that show up on your doorstep… how long does it take for them to end up in the trash?
Let’s get to the point of where I am going with all this…
Small businesses built this country, but corporations started using network media to advertise their businesses, building empires that no small business could compete with because of the cost involved.
I remember many local grocery stores as a kid that was family owned by people who lived right down the street from me. And it wasn’t just grocery stores… barber shops, drug stores, clothing stores, etc… were all owned by someone who lived near by.
The assembly industry is no different; some of you reading this had accounts or stores that handed out your card to customers who needed your services. Then the deep pocket corporations came in and made promises to the “corporate” stores that they could do a better job and in turn make the store money.
Although part of this could be true… the problem with our industry is the technicians are the backbone and few people, for whatever reason, never see it that way, even some of the technicians themselves. We are not losing due to corporate promises; we are losing because the really good techs are giving up.
With that said, the assembly industry for most independents was not lost to corporations through advertising. It was lost through shallow promises that have “NEVER” been delivered on… consistently. In addition, some of the really good technicians (again) just gave up; because by the time they get their cut, there wasn’t enough left to make it worthwhile.
So how do we deal with that?
Today, the independent tech has the power to get the consumer and ultimately the industry back. It doesn’t take that much money; maybe a lot of work, but the work is not labor as much as it is gaining knowledge through education and experience.
The knowledgeable independent technician must be an insightful marketer and learn how to effectively promote their business, but that takes time. That is where this network comes in.
The United Assemblers network “works” the Internet daily and that in turn optimizes every one of its subscribers that have a Website get noticed through daily updates, prospecting for on-line dealers to exchange links with us, teaching techs about sponsored ads, teaching how to use social media and ultimately passing all that on to it’s subscribers.
It “is” time to reinvent the proverbial wheel!
Advertising will never be the same, so if you want on this band wagon, you must start with a Website. You cannot run sponsored ads without a website, and today… customers expect you to have one.
Once you get a sponsored ad campaign going like Google AdWords, you should start seeing results with customers calling you directly, and guess what… you make 100% of what you do.
Depending on what you want to do, you can run more than one campaign. But be very careful on your key word or key word phrase selections. Your campaign funds could be depleted quickly.
For example, if you do furniture assembly, and you use Sauder or Ikea as one of your key words or key word phrases, someone looking for Sauder or Ikea furniture may click on your ad, but when they see your Website doesn’t offer furniture products, they will hit the back button. You just lost money.
All of our goals (if you actually have any) ultimately, are pretty much the same. We want to be successful. If you learn how to work the Internet and how to network locally, I can guarantee you will become successful. It will also greatly help if you become a member of this network.
This network can help with your personal quest, making you and the rest of us become powerful as collaborating businesses in the same industry. All you need to do is get involved. We may already have some of that power, but until more of us get the vision of what it will bring through unity, count on continuing working for a much smaller cut… Did you know some national assembly companies will pay you more “IF” you have the credentials to prove you are actually a professional assembly/repair business?
One very sad fact… some of you will just sit at home complaining about the way it should be instead of doing something about it. You can do something about it by getting involved with this network.
Get the job done right the first time...
Having the right tools will make your job much easier and help you make more money.
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MikeM
http://unitedassemblers.com/
http://the-savvy-tech.com/
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You know the product... ready-to-assemble (RTA); comes in a box and most people don't even want to put it together. Those who do, are usually doing it wrong, then blame the stores for selling a bad product, considers the product junk or both; either way it’s a bad image for the store and maker of the product. Manufacturers, retailers and on-line dealers will sell more product if they had a source (that they can depend on) who assembles and services these products. There have been many independent professional technicians and national assembly companies who compete for the end customers business. With the independent technician being the real professional and the national assembly company being the entity promising better service because of a corporate structure and tracking programs. Independent professional technicians and national assembly companies have their positives and negatives; but when these two sources come together with an understanding and true collaboration… The manufacturer, retailer, on-line dealer and (most important) the consumer; they all win when RTA products are assembled correctly the first time. There are too many manufacturers, retailers and on-line dealers that are gun-shy with the service providers of the RTA industry. The major reason is greed and little consideration for the technician who is the backbone of the industry. The retail stores rightfully collect a fee for processing a purchased assembly at the time of checkout. I personally think it should be a flat fee but the reason for that later. There is a very valid reason for collecting the fee at checkout… to get the consumer to buy it; it’s that simple! And as stated earlier, most consumers don’t know what they are doing when it comes time for the do-it-yourself scene; so if the store wants to be known as selling good product, it behooves them to sell someone who knows what they are doing when it comes time to put-it-together. Then we have the national assembly companies; who are no more than order takers (I don’t care how much they spent on a tracking software package). Most national assembly companies take as much as sixty percent of what the retailer pays them, leaving the tech forty percent. OK… the national assembly company has over-head like a commercial building, employees, insurance, sales-people, utilities and yes tracking software; so they too need to collect a fair fee to keep their operation profitable. But if they truly want to service the retailer like promised, they need to make sure the technician is paid well for what “they” do. The technician is (most times) not an employee who shows up to a job puts in eight hours of work and goes home. The technicians are usually contractors and they too need to be compensated accordingly.
The whole point here is the bottom line, when that original $96 was collected it seemed like a lot of money until it is broken down in fact that the technician is not always making good money. Many of the techs don't even break it down like a business even though they are one. |
This article was written by Mike Mehrle and is the property of UnitedAssemblers.com any reposting in part or whole without written permission is prohibited by law.
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I often asked myself what it would take to get a customer like & trust me. If you've never thought about it before, you should start thinking about it now. Getting to know your customers and understanding their personalities is one of the key ingredients in getting them to like and trust you. From one of my mentors over the years, I've learned and believe there are four major personality traits. I also associate four different colors that I feel match these "typical" moods in each of these personalities.
Here's a brief rundown of each:
YELLOW
This is what I like to call the organic personality. This personality just wants everyone and everything to be okay. All natural, peace, love, joy, recycle and everything that goes with it. You'll also find this type of personality likes to offer you something to eat, drink and makes sure everything is OK every 15minutes. Be courteous, kind and sympathetic to these personality types and you will surely win them over... at least for some of water and a smile.
GREEN
Okay, everyone get out your calculators! This type of personality looks at every nickel and dime! They will go through your list of items, compare your prices to what they wrote down when they spoke to you on the phone and may even want to squeeze in a couple other items that they try to "oh, and I forgot these items…" schmooze you into including. Though you should be this way with everyone you deal with, be especially up front with all your project terms and conditions you provide to this personality type BEFORE you get there to do the job whenever possible . Account for everything, keep a tidy work area and have a nice clean work order copy for the customer to keep when your done and this customer will surely be a plus... but they probably won't tip. :(
BLUE
Girls just want to have fu-hun! This personality needs you to put their stuff together because the night before they were having way too much fun, way too long into the night and they're still happy to see you in the Morning! Or they got somewhere to go ASAP! Be confident, smile and act proud to be there. This personality type, as long as it's fun, will always be an enjoyable customer. If you have a good time with this customer while working hard on the project, they will be so glad you're doing it instead of them. They will surely tell all there friends about you... and you may just get a good tip with that ice water! :)
RED
AGGRESSIVE! "I am in charge and I'm always right! At least I think so". It's going to cost me how much?” “I could build them myself, but I just don't have the time...I... uh... have more important things to do... over here... while I sit and watch you build everything." Yeah yeah... we've all heard this story before. This personality type loves to be in charge, always wants to know what you're talking about and never wants to appear stupid (not that anybody does). Win this personality over by sticking to the business at hand, complementing them and their dwelling, office, car, electronics... you name it! If they feel like you feel they are important...then this could be a big referral opportunity! Of course, be fun at the same time as this personality type is attracted to BLUE personality types.
As you learn these four different personality types, the next step to master is how to mirror them or to reflect their attracted personality type that they prefer to have around them (Like RED to BLUE). Believe me, we are not born with these skills. However, just like any other important tool you learn to use in your daily life, learning how to identify personality types will earn you endless referrals... and hopefully a few good tips along the way... "SHOW ME THE MONEY!"
Good Success!