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| The e-Servicer |
Monthly communication from United Servicers Association |
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Greetings! ,
The month of November is the point of the year where we often feel forced to consider the stark reality that winter is coming. There's plenty of work to be done as we prepare our homes for the change in season, and plenty of groans as the first Christmas ads begin to air on television. But despite the early onset of a winter wonderland at the mall, November is a month full of warmth and family.
Veteran's Day--usually viewed as a solemn reminder of the sacrifices made to protect our freedom can also be seen as a reflection of the values that bind us together through difficult times. It's that same idea of community that has been essential to survival since the earliest days of mankind. By coming together with common goals in mind, we're made stronger as a whole.
Thanksgiving brings us together again to share a feast with our family and friends. But this time, instead of a chance to reflect on trials overcome, we take the time to celebrate the things we are most thankful for. To examine the shared experiences and joys which are our rewards in life.
With these ideas in mind, it can be the perfect time to examine our businesses. What are the practices that bring value to your business? How do those values keep your business strong through difficult seasons? What are the successes that you're most thankful for in 2011? How can you work towards repeating them next year? These are all questions that can be explored within the USA community, and we encourage you to keep them in mind and bring them with you to our upcoming ASTI, February 15-18, 2012 in San Antonio TX.
In the meantime, don't forget to enjoy the season. Before you know it, winter will be here.
eServicer Newsletter Team
United Servicers Association
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The Original Blue Book
Order your copy at www.unitedservicers.com
You can still order the traditional technician pocket version of the printed Blue Book from USA
Place your order today at www.unitedservicers.com
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2012 ASTI ON-LINE REGISTRATION!
Appliance Service Training Institute
February 15 -18 in San Antonio, TX
Visit the ASTI website www.asti.us
Only $499 for four days - over 187 hours of service training.
Visit www.asti.us for the latest details and full descriptions of the training sessions offered.
See your Parts Distributor for a discount coupon.
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"Thank you for a fantastic RSM this weekend!"
USA Regional Service Mmeeting Program a Resounding Success!
 The USA Fall Regional Service Meeting (RSM) program was an overwhelming success. USA organized RSM's in 7 regional cities, training over 265 attendees. Participants received technical training from Whirlpool, GE, Electrolux, Bosch and Dacor. USA members Dean Landers, Tanner Andrews and Paul Mac Donald provided training on Service Company Marketing, CODB, 1st Call Completes, and Technician Productivity at each event. Todd Bradford, Aviv Service Today, commented: "I wanted to thank you for a fantastic RSM this weekend in Atlanta. I really left with a lot of great information and ideas for making our business more successful. I especially enjoyed the business management and marketing class you conducted. Sharing your business experiences and advice really got me thinking about the things we could certainly change and/or do better. Thank you for a great meeting, and I will definitely be attending future USA events. I look forward to seeing you in San Antonio next February." Ed Moore, Moore & Moore Appliance Service LLC, DBA Mr. Appliance, said: "I want to thank you and USA for providing this very informative meeting. I would very much like to have spent the 2 days in your business management class, but wanted to make some contacts with the manufacturers that were providing classes. Bosch and GE provided very educational classes, and I was told by the Bosch representative that they are short servicers in our area. This was a very productive 2 days for me. I feel like I have been refreshed and hopefully this will last into next year. Good classes always refresh me and give me new ideas to implement into my business." Leroy Litzholff of Mr. Appliance had this to say: "Thanks again for the business classes. Very enlightening. I was impressed with your Google knowledge! Now I've really taken to heart about getting up there on the first page organically by trying to implement your tips and ideas." 
The RSM program is one of many ways that USA executes its mission to ensure training is available to our industry. The RSM's were made possible through sponsorship from Mr. Appliance, Mega Group USA, NEW as well as local parts distributors in each city. A special recognition and thank you to Reliable Parts, Inc., 1st Source Servall, Marcone Supply, WL May and Fox Appliance Parts of Atlanta for their continued support of the independent servicers. Look for more RSM's next spring, Check with your local parts distributor to see if they're sponsoring one in your market..
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Truck Inventory Key to First Call Completes
By Paul Mac Donald, USA Executive Director
At seven recent Regional Service Meetings (RSM) organized by United Servicers Association, attendees were instructed on the importance of first call completes to their bottom line and how having the right truck inventory was key to increasing first call completes.
Regular review of each technician's truck inventory is the single biggest value-added activity to increase first call completes in any service business. Individual part sales of 4 times a year are a good measure of what should and should not be on your truck. If a part is vital to your business and sells less than 4 times a year, keep it in the shop rather than on your truck. This way other technicians can have access to it when needed, thus reducing the dollar investment of your total inventory. To keep on top of their largest asset, companies must review truck stock at a minimum of once a year and often more frequently. Technician skill sets and geographic territory will affect truck stock and every technician will be unique.
At the Sacramento RSM, Brad Cantor of WL May Parts Company, told attendees that their company regularly provides their customers with individual company purchase history as well as the top selling parts at WL May Company. To see the top selling parts of WL May click here.
Making sure your truck stock is both current and accurate is an arduous task and one often postponed for a slow day that often never comes. Companies that take truck stock seriously have better efficiency, first call completes, satisfied customers and most of all, better bottom line profits!
A special thanks to WL May Parts Company for providing this service to their customers. Why not ask your parts distributor to help you optimize your truck inventory.
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Two Sides of the Same Coin
Side One: The Crowding Out Effect
By David Borsani, A Complete Appliance
Another summer has wound its way to oblivion. It was what I like to call a Medicare summer. Those who pay C.O.D. rates got first class treatment while those who use third party contracts were treated like flyers who try to cash in miles to fly to exotic places during the holiday season. Manufacturers continued their onslaught on the reducing service cost by sending out addendums to their authorized service companies without so much as an "I am sorry" statement. Lest you think these manufacturers were passing on their largess, these addendums were meant to lower the cost of service to manufacturers, not raise them.
The appliance repair industry is once again facing a challenge to its economic vitality with the increasingly common third party contracts that are inundating the market place. Third part contracts are being sold by major retailers such as Lowe's, Home Depot, Best Buy, etc. These contracts are attractively priced and appeal to customers who do not want to face the risk of paying full price for service.
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Two Sides of the Same Coin:
Side Two: Business Opportunities Galore
By Dean Landers, Landers Appliance
I've been in business for almost 30 years. I don't know about you, but ever since I started I have always tried to make money. Admittedly, I have not always succeeded in being profitable, but that has never changed my efforts in striving to achieve profitability. I have learned some hard lessons over the years that have provided me with helpful guidelines to insure that I am profitable. Businesses can increase profitability by doing two things: cut expenses or grow revenue. Here is a random list of some of the things I've learned:
- Never count your chickens before your eggs are hatched.
- Don't spend money that you don't have or can't borrow to repay.
- Make sure you have an established line of credit (LOC) regardless of whether you'll ever need to use it. It is smart and safe to have a LOC in place just in case.
- Don't believe what others tell you they can or will do for you unless you have a written guarantee or are able to see a history of the person or company actually delivering on the promises being made.
- Make sure you know your own costs of doing business (CODB - commercial break: there is a free downloadable form for all USA members on the USA web site that will help you determine your CODB). I can still hear the voice of Dave Ashton (formerly with NARDA and USA) making impassioned pleas for appliance business owners to make sure they knew what their CODB was.
- Long time appliance business guru Otto Papasadero has said over and over again that "You can't manage what you don't measure". With that in mind, you must have regular Profit & Loss and Balance Sheet statements for your business that you study and review monthly.
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Consumer Safety Concerns Then and Now
By Craig Reilly, CEO PlusOne Solutions, Inc. 
Back in the "old days," whether you were a major retailer or manufacturer, most in-home service calls were handled by in-house personnel. A few large companies owned most of the market. They had teams of service personnel responsible for home delivery, warranty work and service.
At the time, most workers stayed with the same company their entire careers. They were like family and represented little or no criminal risk to employers. People were a lot less mobile and mostly remained in the same city their entire lives.
Society was less litigious and terms like "Amber Alert," "Security Level Colors," and "Registered Sex Offenders," had not been coined. Other than an employee's skill set, reliability and personal appearance, employers didn't worry.
The public trusted and were loyal to brand name products, equated them with efficiency and professional service and used them whenever they could. Customers expected and received personal service. It was not uncommon to schedule a service call with someone you already knew and tell the technician, "I will leave the back door unlocked, please pull it shut when you leave." But today, the market is much more complex, news travels faster with the Internet; people are much more mobile, and many service functions are now outsourced to independent service companies and third party administrators.
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USA to Help Set the Standard:
National Trade Organization Endorses PlusOne Solutions' Effort to Develop Industry-wide Credentialing Standards for Servicing Companies
ORLANDO - PlusOne Solutions, Inc., a provider of comprehensive management services including criminal background and drug screens, insurance verification, online training, and recruiting and dispatch for the in-home service  industry, announced an agreement with the United Servicers Association (USA) to develop industry standards for the credentialing of in-home service providers. USA is one of the largest trade associations representing the appliance service industry. In addition,PlusOne has been approved to provide background and drug screenings for USA's member companies. "We want each of our members to have confidence in their workforce while giving the homeowners and businesses they serve peace of mind," said Lance Kimball, president of USA. "This is gained by knowing they have a trusted technician serving them." PlusOne offers criminal background and drug screenings that are universally accepted throughout the appliance and consumer electronics industries in the US and Canada. This portability saves dealers and contractors the time and expense of having to repeat the screening process, which enables them to remain in-compliance with multiple manufacturers for a two-year period. PlusOne also serves as a central source for manufacturers and retailers to confirm proof of compliance for their contracted servicing companies including insurance and contract documentation.
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Things Everyone Should Know About Background Checks
By RTI Inc. / ScanScreener
Security simply must now be considered a business fundamental. Recent events dictate that businesses and organizations provide the utmost due diligence to obtain as much background information on employees and applicants as is possible.
A simple check of criminal history is no longer sufficient, and even when a Social Security Number validation is added, it often can't indicate fraud. Even the most basic background check now requires a multi-stage or "layered" approach in order to be assured that everything possible has been done to make thorough checks during the hiring process that will still be economically viable and protect your organization's interests.
Ideally, every applicant and employee of any organization would undergo an FBI background investigation beginning with a fingerprint match and a birth certificate, culminating with a dossier containing interviews with friends, neighbors, and associations going back to childhood. Since the process is cost prohibitive and entirely too time consuming, it is our job to assist you in obtaining the best and most reliable information in the most cost effective manner. This information is designed to inform you about background checks and assist you in making the best choices for your organization and budget.
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Whirlpool Insurance Compliance:
Notification from Whirlpool Field Service Administration to Service Providers
 Dear Service Provider:
Whirlpool Corporation constantly strives to enhance our processes in an effort to make doing business with us easier for you, our authorized service network. That being said, Whirlpool is pleased to announce a change to our insurance management strategy. On January 1, 2012, PlusOne Solutions will take over the responsibility of managing insurance compliance for the Whirlpool authorized service network. PlusOne Solutions had previously been selected by Whirlpool Corporation to administer and manage the technician background screening process. In an effort to streamline our processes, they will now handle insurance compliance as well. It is our goal that this consolidation will result in far less confusion, as well as improved accuracy and customer service. Please look for additional information both in your inbox and in your mailbox in the coming weeks. Whirlpool Corporation would like to thank you in advance for your support and cooperation as we work through this transition. __________________________________________________________________________________ Whirlpool Cuts 5000 Jobs
By Aaron Smith, CNNMoney.com
Appliance manufacturer Whirlpool Corp. announced Friday that it is cutting 5,000 jobs, mostly in North America and Europe, and closing a refrigerator factory in Arkansas.
Whirlpool also cut its profit forecast for the year. The triple whammy of bad news sent the company's shares plunging 14%.
The job cuts amount to 10% of the company's workforce in Europe and North America.
Whirlpool, based in Benton Harbor, Mich., said it plans to shutter its plant in Fort Smith, Ark., by mid-2012.
That means that about 1,000 workers -- including 884 paid by the hour and 90 on salaries -- will lose their jobs. In addition, 800 other workers have already been laid off from the factory.
Whirlpool Chief Executive Jeff Fettig blamed the job cuts on weak demand and higher costs. __________________________________________________________________________________ |
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Electrolux Plans Layoffs, Cost Cuts of $770 mln
From CBS News
(AP) Stockholm - Swedish appliance maker Electrolux AB plans to cut costs by around 5.1 billion kronor ($770 million) a year and review staffing levels in all regions because of a broad downturn in demand.Electrolux said Tuesday it has been "tangibly affected" by a decline in consumer confidence in Europe and North America, while increased costs for raw materials have also weighed on earnings. The company forecast 2011 sales volumes of household appliances in North America to be 25 percent below the peak year of 2005 and sales volumes in Western Europe to be 15 percent below the peak year there of 2006. It said it expects the headwinds to continue in 2012. Shares in Electrolux dropped by 7.9 percent to 111.4 kronor ($16.8) in early Stockholm trading.
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5 Rules for Marketing to Women
By Belinda Parmer, www.fastcompany.com 
There's a shortlist of mistakes companies and brands typically make when trying to sell products to women. Marketing missteps can hurt sales, but more importantly, they can actually turn women off from your brand entirely. If you've ever committed the sin of "pink it and shrink it," it's time to reimagine your strategy. Here are five pitfalls to avoid.
1) Don't pink it and shrink it
The cardinal sin of marketing towards women is to "pink it and shrink it." The woefully misguided approach goes something like this: Take a perfectly decent product, give it a marshmallow Barbie paint job and miniaturize it so it fits perfectly into tiny female hands. Ta da! Female friendly. We're bound to love it, right? What makes things even worse is that the tech specs on "female orientated" models often fall short of the "male" counterparts. It's not the color of a product that entices us, it's the sleek design quality.
2) There's no need to overtly target usIf you try too hard to push exclusively to women, we'll see right through it. Take time understanding us like you would any other demographic, but please don't overthink it. Just because we've got breasts doesn't mean we have special needs. We're different but don't want to feel we're that different.
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US Crime Statistics
- One Murder every 33 minutes
- One Violent Crime every 5.5 seconds
- One Assault every 6.5 seconds
- One Burglary every 10 seconds
- One Rape/Sexual Assault every 2 minutes
- One Identity Theft reported every 6 minutes
- One in 6 Women is a victim of Attempted or Completed Rape
- There are over 550,000 registered sex offenders in the US
- Over 1,000 sex offenders change their address every day
- 83% of consumers assume technicians are background screened
- 89% of consumers said background screened individuals are important to them.
Sources:
- Sue Weaver Cause
- Mindspot Market Research
- www.familywatchdog.us/facts.asp
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Jennifer's Warranty Tips
Tip #20 Frigidaire Rejections that Need Your Attention
As the appliance industry keeps changing, so do the rejections. The days of a simple rejection like wrong serial # and invalid part invoice are over, manufacturers and the billing systems they use have created newer, more intricate rejections.
It's a never-ending battle for those that bill claims. If you don't spend the time reviewing, resubmitting and making phone calls about your warranty claims, you are losing money.
It seems that it takes as much effort and skill to repair an appliance as it does to get your warranty claim paid. I do my best to keep up, because just like the fashion industry, the appliance industry has it trends.
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About USA
USA's mission is to develop and provide services and programs intended to assist members in building strong businesses in North America's competitive environment.
Among these services are:
- Educational Programs
- Manufacturer Relations
- Management, Marketing and Operational Programs
- Peer Group Formation & Facilitation
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Contact Us
United Servicers Association
3105 North Ashland Avenue, Ste 199
Chicago, IL 60657
1-800-683-2558
FEBRUARY 15-18, 2012
ASTI REGISTRATION
NOW OPEN!!
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