Let us get the media working for you!

When was the last time your local newspaper ran an article about your company?  How often are you asked by a reporter for your expert opinion?  What do you find when you Google your company's name. If you don't like the way you answered those questions, we can help.  Champion Management specializes in providing marketing and public relations support to small- and mid-sized businesses that don't have the internal expertise or resources to do it themselves. 

A sophisticated and effective PR campaign can give a needed boost to your next product/service launch, generate new customer leads, increase your top-of-mind awareness and dramatically improve your search engine visibility.  Done right, PR provides a much bigger bang for your buck than traditional advertising.

Champion has designed a package of public relations services exclusively for WDDA members. We can also customize services to address your unique market challenges, starting with a comprehensive strategic assessment of your marketing/public relations approach. Those services will be discounted at least 25% for WDDA members. Contact us to get started today, and be sure to tell us you're an WDDA member for your special rate.

Ladd Biro
Champion Management
lbiro@championmgt.com
972.724.3039

Forecast for Economy and Construction Industry

One of America’s largest financial institutions sent a note to its clients in August saying, “The economy is only one shock away from falling into recession.”  Is this just hyperbole?  And what exactly constitutes a “shock?”

Could it be an ongoing accumulative European debt crisis?  Or perhaps a massive earthquake and tsunami in Japan that disrupt the global supply chain?  What about rising commodity prices, gas prices near $4.00 a gallon, banks that won’t lend money and stubbornly high unemployment that has weighed down the economy longer than any point in our post-World War II history?

These persistent troubles, and many more, were addressed by one of the nation’s most respected economists, at the 2011 GlassBuild America™ Expo in Atlanta.  Dr. Jeff Dietrich, a Senior Analyst with the economic consulting firm ITR, gave a broad overview of the U.S. economy and the construction industry – where it is now and where it is headed – in his presentation entitled “The Economy ~ 2011 and Beyond.”  Dr. Dietrich spoke Monday evening, September 12, during the 6th Annual NGA Glazing Executives Forum.  

Attendees at the Glazing Executives Forum heard Dietrich expand on these and other critical economic indicators as he painted a vivid picture of the U.S. economy in 2011 and 2012.  He explained how businesses are far better positioned today to navigate the uncharted waters of this tepid recovery than they were in 2008. 

During his presentation, Dietrich remarked: “The hard truth is that there will be no rapid change in economic conditions.  The present climate of uncertainty is disorienting as well as discouraging, but this is not the beginning of a double-dip.  Even though most construction sectors remain below 2010 levels, there is positive momentum in commercial construction.  Housing starts are climbing out of the mild secondary recession cycle and will head higher in 2012 and 2013.”

Jeff has been our anchor at the Forum for the last six years, and we’re delighted that he returned to give us his unique, industry-specific take on the economic outlook.  Some of our regular attendees say his presentation is reason enough for them to return to the event year after year.  His forecasts have proven to be invaluable in helping these executives develop their short- and long-term strategic plans. This year was no exception.

David Walker
VP Association Services

Increase Profits with Consulting Collaborative

Consulting Collaborative works with glass and glazing subcontractors year after year so they know what works (and what doesn’t) in industry companies.  The NGA has partnered with Consulting Collaborative to provide business development consulting services to increase sales as well as profits and also offer many other initiatives that contribute to achieving a very successful company in the glass and glazing industry.

Consulting Collaborative is continually seeing best practices at companies nationwide and they are up-to-date on today's challenging business environment. Throughout the process, clients will benefit from learning the newest and proven strategic advantages as Consulting Collaborative works to validate the strengths and weaknesses of your company.

Ready to get started? Consulting Collaborative will provide you with a formal proposal including an in-depth explanation of the steps involved.  Work with Consulting Collaborative today and receive the benefits for years to come.

Richard Voreis is a contributor to this blog and former member of the NGA Board of Directors. You can contact him directly at 214-361-2130 or rdvoreis@mindspring.com.

Surviving this year? Our Educational Forums can Help.

The past few years have seen financial crisis followed by a tepid recovery. Sweeping regulation has affected banking, healthcare, construction and other industries. The stock market has experienced wild fluctuations. Technology continues to change. The value of our currency takes a significant swing on an almost daily basis. Taxes are creeping up. Unemployment remains stubbornly high. Markets which were once robust are now stagnant. And new opportuni­ties are rising from the ashes.

Where is the economy heading? What are these opportunities? Where will new markets emerge? And how do smart business owners and managers adapt and thrive in the face of these political and economic challenges? Wouldn’t it be great if you could gain insight into the construction, glass, and window & door industries? The 6th Annual Glazing Executives Forum and the 2nd Annual Window & Door Dealers Forum, September 12-13, 2011 in Atlanta, will have some answers.

• Join Gene Marks at the WDD Forum as he explains the meaning behind today’s numbers, the trends in Washington, the new technologies coming on the market, and where he expects tomorrow’s opportunities for the business community to be.
• Economist Jeff Dietrich of EcoTrends will deliver his annual economic forecast at GEF. Dietrich speaks directly and flavors his presentation with humor and keen insights. His forecast is an annual highlight , and it’s a presentation you need to hear. 

If you attend either forum, you get access to the GlassBuild America tradeshow floor - so you can continue to meet, network with, and learn from the industry.  View complete details and register today.

See you in Atlanta!

Arrive at Action Plans Jointly

Arrive at the Action Plans for employees jointly.  In other words, don’t force your Action Plans on the employees, but instead, encourage each of your employees to develop their own Action Plans in support of the company’s Top Priorities.

This basic commitment acts as a self-motivator and immediately establishes buy-in on the part of the employee.  If it’s their idea, then the power of human nature will take over and the Action Plan will be accomplished.  This “fact of life” is extremely important!

As a manager you can and in some instances you should influence and “fine-tune” Action Plans, but ultimately it is best if it is their idea rather than yours.

Also, you should always discuss each employee’s Action Plans with them personally in a face-to-face private meeting.  Because mutual commitment is important, too!

Richard Voreis Consulting Collaborative

Personal Training and Development

As I travel around the country during the last several years and talk to glass and glazing subcontractors as well as many other types of businesses one of the biggest challenges I see is getting skilled and experienced employees in both office and field positions.  When the building construction economy was strong this need was especially urgent.  It’s predictable, it will happen again!

In that regard, make sure you have the following implemented within your company:

• Orientation and Basic Training for New Employees
• Advanced Training for Veteran Employees
• Establish Employee Specific Action Plans for Training

It’s a proven fact, training results in continuous improvement for the company and for your employees.  The most successful companies focus on employee development.

Richard Voreis Consulting Collaborative

Online Compensation Benchmarking for NGA Members

The National Glass Association has partnered with FMI to provide an online compensation benchmarking tool to members. Compensation Interactive is an online database with accurate up-to-date compensation data for general and specialty contractors. 

By using the tool, company executives can benchmark compensation information by employee level, job title, geographic region, revenue level, and more. Participating companies can use the tool to enter their own data and benchmark against other firms in the industry.

“Knowledge is power and we’re thrilled to extend this opportunity to our membership so that they can use this information to better their businesses,” noted David Walker, Vice President of Association Services. “We’ve worked with FMI in the past to support the Glazing Executives Forum and the Glass Management Institute and can say with confidence that their work is top-notch.”

FMI is the largest provider of management consulting and investment banking to the engineering and construction industry. To learn more about the tool and see a sample report, visit www.compensationinteractive.com. Be sure to mention that you are an NGA member.

Don't Let Past Due Accounts Go On Vacation

We're now into July, and many people are wrapping up loose ends and starting to think about their summer vacations. In the US, over 65% of the work force takes some vacation time between Independence Day and Labor Day. Vacations are fun. Vacations are escape. Vacations are rejuvenation. Vacations are also expensive. Everyone has been pooling their funds because they know that Disney will suck the money out like a vacuum.

Everyone spends way too much money, but they don’t stress about it. They tell themselves “Hey, I’m on vacation”. They don’t give the money spent a second thought. They don’t worry about it. Vacations are no worries. All worries are left at home. They’ll worry about those things when they get back . . . . . maybe.

Things like your past due bill.

The vacation mantra is “Eat, drink and be merry”.  The problem is that your debtors are going to be eating, drinking and causing merriment with the money that they owe you.   You’ve worked too long and too hard to stand idly by while your debtors spend your money (money that should be in your pocket NOT theirs) on $7.00 hot dogs, overpriced tacky doodads and novelty hats and t-shirts that are worn only once.

You need that money so you can buy all that stuff.  Think about your own schedule and your own office. During the summer, don't you find it more difficult to connect with others due to their vacation schedules?

Now is the time to be proactive about your collection efforts. Don't chase your slow paying accounts all summer long. You know the excuses - `We promised to take the kids to Disney' or `The person who signs the checks won't be back until next week`, etc. Take a long look at your aging report and do something now to get those accounts paid. Catch them before they head out and you fund a week or two of someone else's fun, rest and relaxation. Catch them when they have that big pool of vacation money.

It’s a win-win situation. You get your money back so you can better enjoy your own family vacation.  And you give your debtors one less thing to worry about when they get back from their trip. 

Brian A. White
Senior Cash Flow Consultant
Transworld Systems NGA WDDA

Focus on Quality

Focusing on quality means:

• Quality People
• Quality Products and Services
• Quality Project Management
• Quality Training
• Quality Top Priorities of the Company
• Quality Employee Action Plans

In any of these quality criteria, when you improve quality you will also improve results and ultimately improve the overall performance of your company.

Are you satisfied with the quality of your people, services, project management, employee training, annual company top priorities and the quality of the employee Action Plans that support the company top priorities?

If not, get back to me and I’ll tell you how to upgrade your quality.

Richard Voreis Consulting Collaborative

Focus on Your Customers' Needs

How are you doing answering my questions from last month?  Did you answer them? If not, you’ll need to answer these questions so you can take advantage of what I’m sharing with you in the blog posting and several more to come your way.

• Do your employees have Action Plans that are specific, measurable and time framed?
• Are all your employees working toward common company goals?
• Are all your employees working on the right things?
• Are all your employees on the same page?

For those of you who answered “yes” to these questions, here is the first of several Action Plan guidelines for you to implement: Always focus on meeting the wants and needs of the customers.

Hopefully, everyone at your company recognizes the need to serve external customers like general contractors, etc.  If not, you’ve got some basic educating to do.  What may not seem so obvious is serving “internal customers”.  Internal customers are the follow-employees and the various departments within the company.  Serving the internal customers is just as important as serving the external customers. In fact, by serving internal customers it’s easier to serve external customers.  That message needs to be conveyed to all employees.

There are many ways to enhance serving internal customers and Consulting Collaborative clients know all of them because we are tell them.

The Second Guideline: Listen to the “Voice of the Client” (Conduct Client Satisfaction Surveys)

If I asked your employees if the company had happy customers, most people would have a definite opinion.  They’d say either “yes” or “no”.

However, if your company does not conducted any customer satisfaction surveys, the answers are based upon personal feelings that may or may not represent how the customers really feel. Conducting formal surveys of your customers is essential and they should be conducted on a consistent basis.  This means the customer is speaking; thus, the term “Voice of the Customer”.

The “Voice of the Customer” satisfaction survey can be conducted via the telephone by a knowledgeable representative from the company.  Phone surveys (as many in-person surveys as possible) are the best way to get input and to insure input is received.  Mailed surveys will result in less than a 10% return rate, whereas phone or in-person surveys will essentially be 100%.

Richard Voreis Consulting Collaborative

Getting Started: The Basics of Credit Card Processing for Small Businesses

Have you ever been overwhelmed with the thought of making a change for your small business?  The idea of accepting credit cards can seem like a difficult change for small businesses that have only accepted cash and checks as a form of payment.  Although it may seem like a complicated topic, it is important to take a look at it in bite size proportions.

Paying with a credit or debit card for most customers in America is easier than having cash on hand. Customers prefer to pay for items and services with either a credit or debit card.  This grants them the ease and convenience of payment flexibility. Before your business decides to accept credit cards, it is important to have an understanding of how the payment processing industry works.  Let’s take a look at the basics of credit card processing and answer some of the questions you may have.

What is PCI DSS? (Payment Card Industry Data Security Standards)
“PCI DSS” is a major buzz word in the payment industry right now.  Many small business owners are wondering how this standard will impact their business.  The PCI Security Standards Council was established in 2001 by American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa, Inc. The primary goal of this council is to protect cardholder information.  The council has defined six goals and 12 corresponding requirements that any business of any size is required to adhere to when accepting payment cards. 

What Happens Behind the Scenes When a Customer Pays With a Credit Card?
The credit card network consists of a couple of primary players.  The process begins when a card issuer provides credit or debit card to the customer.  The main card issuers are Visa, MasterCard, American Express and Discover. When the customer pays with a credit or debit card in a store, the card information is gathered, either by swiping the card through a terminal, entering it into a gateway or keying it into a terminal.

The authorization system receives the card information and either approves or declines the transaction and notifies the merchant through the terminal or gateway.   All of the day’s transactions are sent to the settlement system and the movement of money from the cardholder’s credit card account into the merchant’s bank account begins.   The money from those credit card transactions is deposited into the merchant’s bank account within 2 business days.

How Are My Rates Determined?
The most important thing to understand with regard to pricing is that the credit card processing rate structure is based on risk.  The more information that is provided to the authorization system, the more likely you are to pay a lower rate. There are two main account types used in setting credit card processing rates: Retail and MOTO/Ecommerce. Retail accounts are for businesses who see their customers and are able to swipe their customers’ cards the majority of the time.  Retail accounts are generally the lowest priced accounts, as the maximum amount of cardholder data is captured through the magnetic strip on the back of the card.  This reduces the risk associated with the transaction and allows for a lower rate structure.

The other account type is MOTO/Ecommerce.  This works best for businesses who will not see the customer the majority of the time and will be keying the card information into a terminal or gathering information through a shopping cart.  Since the magnetic strip on the back of the card cannot be read, a minimal amount of cardholder data is captured and transmitted to the authorization system.  As a result, transactions under this account type usually have higher risk and higher rates.

How do I understand the fees on a statement?
Each month, you will receive a statement reflecting the previous month’s activity.  Credit card processing rates are often found to be confusing. Here are some miscellaneous fees that may be found on your monthly statement:

• Annual fee
• Monthly statement fee
• Visa authorization fee
• MasterCard authorization fee

It is important to watch out for a processor that lists the total discount expense without breaking down the associated fees. Also make sure that all fees were fully disclosed and explained to you. Some fees to question are:

• Monthly minimum fee
• AVS fee (Address Verification Service)
• CVV fee (Card Verification Values)
• Supplies fee
• Batch fee
• Customer service fee
• Terminal support fee
• Merchant club fee
• PCI DSS Compliance fees

Now that you have a better understanding of credit card processing, when is the best time for your business to accept credit cards?  The answer is simple; when you believe it will improve your business.  Accepting credit cards may help to increase your number of customers, average sale amount and cash flow.  One way to help you determine if it would impact your business is to ask your current customers. Asking your customers can be a perfect and simple way to see if they would take advantage of this form of payment for your business.

Go with the NGA and WDDA endorsed provider

Electronic Data Payment Systems has been providing comprehensive payment processing solutions, valuable educational material and excellent service to NGA members since 2008.  All members are entitled to receive a complimentary savings analysis illustrating the savings available through this exclusive program.  To learn more about the NGA member credit card processing program and other services available to NGA members, call 866.578.9740 or visit us online at www.edpaymentsystems.com/partners/NGA or www.edpaymentsystems.com/partners/WDDA.

Already accepting credit cards?
Fax your statement to 866.528.3854 and a National Enrollment Specialist from Electronic Data Payment Systems will contact you with the results. 

Become our fan on Facebook or follow our blog to learn more about Electronic Data Payment Systems and the credit card processing industry!

Kelsey Tedeschi, Marketing Manager Electronic Data Payment Systems

What are your Social Media Do's and Don'ts?

At the NGA and WDDA, we try to have an active social media presence. We tweet and post articles on Facebook a couple of times each work day and we post on this blog almost every Monday and Wednesday. Just today I was reading a new White Paper from PR Newswire "Mastering Public Relations in Social Media" and trying to figure out ways we can improve our social media presence (you can sign-up for a free copy of the paper here).

We are always looking at ways to interact with our members on social media, and the list of dos and don'ts in this white paper mention a couple of things that we need to work on.  Here's the list:

• Do... establish a set of social media principles
• Don’t... forget to review/rethink them on a regular basis
• Do... collaborate across departments
• Don’t... put up too many internal roadblocks
• Do... replenish the content flow early and often
• Don’t... limit or frustrate transparency
• Do... set goals and measure yourself against them
• Don’t... be a jerk

How does your social media strategy stack up?

And don't forget to join us on Facebook and Twitter!

Alyssa Kirkman

NGA WDDA

Create Employee Action Plans

Annual company goals should be supported by employee Action Plans that hold  everyone in the company accountable for success.  If you want to establish plans that are effective, result-oriented  and motivational, you need to include basic criteria:

• Specific goals
• Descriptions of how you will measure progress
• Due dates and/or time frames

When each staff member has their own specific and personalized plan, everyone works toward common goals. As you start setting up action plans, ask yourself the following:

• Are all your employees working toward goals?
  
• Are all your employees working on the right things?
• Are all your employees on the same page?
  

Action Plans tell “how” each employee (management and staff) will impact the success of the company’s annual goals.  In other words, what each employee is going to do to make the company successful.  Everyone from the top to the bottom of the organization has a role in supporting the company annual goals. 

Richard Voreis Consulting Collaborative

Make Payment Arrangements with Past Due Customers

There are many reasons customers can't pay their invoice on time. If a customer is late and you contact them, or they call you, there is definitely a right way and a wrong way to handle the situation. When working with our clients, Transworld recommends that you keep control of the conversation at all times.

We recommend that you ask for your money using this 3 step process:

1. Sympathize: (shows compassion) "I know how you feel, that happens sometimes." (This will defuse any possible anger and catch them off guard) 
2. Remind the debtor of their obligation: (when the money was due), "Mrs. Smith your account balance of $200 was supposed to be paid on  _________ date. (This can possibly cause a little guilt on their behalf and have them realize you are right in asking for the money.) 
3. Ask them:
• “Mrs. Smith will you be taking care of this today or tomorrow?”
• “Mrs. Smith will you be paying with cash, check, or credit card?”
• “Mrs. Smith of the $200 that is now due how much are you short?”
• If they say they are short half, "Okay Mrs. Smith, lets do this, I need the $100 you have now. I’ll mark it on my calendar that your check/money order should be here on __________. Now, how much time do you think you need to take care of the balance? Do you get paid weekly or bi-weekly?
• If they say they are short the whole amount, you are still in control. Now you can dictate payment terms.

This is how NOT to respond when a debtor says they can't pay in full:

1. How much can you pay?
2. When can you pay?
3. Can you pay something? 

Asking these questions gives control of the conversation to the debtor and allows them to make unreasonable suggestions such as “$5.00 per month” (We have clients that in the past accepted $5-$10 per month on a two or three thousand dollar balance!).
 
Instead, state what you are willing to accept in the form of two options: 

1. “I can either settle your account for _____ dollars in the next 30 days or you can start making monthly payments." 
2. "You can do a payment of _____ dollars per month for the next 2 months or _____ dollars per month for 3 months.”

This will force the debtor to choose the option they like best or make a counter offer.  Either way you forced them to begin negotiating payment terms.

Brian A. White
Senior Cash Flow Consultant
Transworld Systems NGA WDDA

Public relations should be part of your marketing mix

Glass shops and window and door companies typically invest significant sums in local market advertising to promote their businesses.  But many of these firms are missing one of the most important ingredients of any successful marketing mix: public relations. 

Here are just a few reasons why public relations should be a frequently used arrow in your marketing quiver.

1. No one can tell your story better than you.  In the absence of a proactive public relations strategy, you risk letting someone else establish your brand identity in the marketplace.  Whether that’s the media, your customers or – worst of all – your competitors, no one should be allowed to define your public image other than you.  A well-crafted series of timely press releases and article submissions can enable you to break through the clutter and distinguish your business from the competition.  Embracing social media and establishing a corporate spokesperson as a respected authority in your industry and/or local market can further elevate your brand and position your shop to capture a premium share of the market.
   
   
2. It’s cost-efficient.  A sophisticated PR campaign can be executed at a fraction of the cost of most advertising campaigns.  Advertising – broadcast, print and even online – can be very expensive, particularly in larger markets.  PR placements, often called “earned media,” can result in editorial visibility in the same news outlets in which you advertise without virtually any out-of-pocket cost.  Many small- and mid-sized firms have found that diverting as little as 10 to 20 percent of their advertising budgets to public relations pays significant dividends in terms of increased name/brand recognition, enhanced image and new customer recruitment.
   
   
3. It’s more credible.  Advertising is paid self-promotion, and consumers are rightly skeptical of it.  Public relations carries the imprimatur of a third-party endorsement, which dramatically increases its credibility.  As a rule of thumb, a positive article written about your firm is worth five to 10 times the value of the same amount of advertising space, simply because the editorial placement is more likely to be read, and believed, by the audience.
   
   
4. Building relationships with reporters can make all the difference.  The time to develop positive relationships with the news media is not when disaster strikes.  Reaching out to reporters in your area, as well as within your industry, when times are good can pay huge dividends in times of crisis.  One of the most effective ways to develop a level of trust and positive rapport with the media is by helping reporters working on deadline.  Always return their calls promptly, even if you aren’t certain why they’re calling.  You can always diplomatically decline to answer their questions, or ask to go “off the record.”
   
   
5. It’s a virtuous cycle.  A robust PR campaign goes beyond generating positive headlines.  The more visible you become, the more the press will seek you out for your expert opinion on other pertinent stories, which further increases your media currency.  A high-profile local glazier could be seen as a third-party expert on the residential construction market, for example.  An auto glass professional could be asked for his explanation about how the windshield protected a family from harm in an ugly car accident.  In addition, media hits can dramatically improve your web site’s search engine rankings.  The more online mentions of, and links to, your company, the higher your site will appear on Google and other leading search engines.

Ladd Biro
Champion Management WDDA NGA

Ladd Biro is president of Champion Management LLC, a leading marketing and public relations agency.  For more information about the NGA’s new PR services offered through Champion, please email lbiro@championmgt.com or call 972.724.3039.

Specific, Measurable, and Focused Goals

I recently read a newspaper article about a young lady who was inspired to climb Mount Everest in May 2010.  She said we all have an Everest and we all have to do what it takes to get to the top.  How did she make it to the top of Mount Everest and then back home safely?  She set goals.

Here’s is a brief summary of her goal setting process:

• Define your goal and outline a plan.
• Set a timeline.
• Think of what it takes to make it a reality.
• Focus and stay positive.

Her goal setting is similar to what you need to do to set goals for your business.  I always recommend to glass and glazing companies that annual goals do not exceed one type-written page - a one-page Strategic Plan that holds everyone in the company accountable for success. Your goals need to be:

• Specific and concise.  Generalities don’t get the message across to your employees.  Make sure your goals are easily understood.
• Measurable. Must be quantifiable. Goas need to be evaluated so you can determine if progress is being made. 
• Focused. Experience shows that three or four annual goals are ideal and more than five most likely cannot be accomplished.

Richard Voreis
Consulting Collaborative

Create Demand For Energy Efficient Windows: Home Score Survey Insights

Market research is like reading a great mystery book you can’t put it down.  That’s because behind the headlines and the carefully chosen words lies the transcripts and data.  That information holds the keys to the direction of the marketplace. Thus was my recent experience while researching the Department of Energy’s (DOE) pilot program, Home Energy Score (HES).   Of immediate interest is the customer research that uncovers real opportunities for window and door dealers, installers and manufacturers to create demand.

According to homeowners’ surveyed, the number one reason they gave for making improvements, by a wide margin, was to save money.  If it could be shown that they save money by replacing old windows, doors and other home building products that would make the decision for them. And by the way, your word on that won’t be enough, according to the survey, they mistrust information coming from a sales person, contractor, or manufacturer.

When asked what would motivate them to make the investment in saving money, they want the following evidence:

• Clear easy to follow information about the cost benefits.
• Testimonials and recommendations from friends, family and associates.
• Information from trusted professionals, 3rd party, utility or government source.

They did not want to finance their home improvements in this depressed housing market because of the difficulty getting home equity loans.

Put these clues together, 1) save money, 2) clear easy and trusted information, and 3) simple and affordable financing and you can create demand for energy efficient windows.

• Create marketing materials and selling guides that include statistical data and information from trusted sources.
• Create a “home improvement bundle” to be installed by your contractors.
• Pre-arrange short-term bank financing.
• Include the cost of a 3rd party auditor in the financing package to assure the work was done properly.

Anyone who owns a home is keenly aware of the rising costs of utilities.  Couple that with the reality that they may be living in their home much longer due to the slow housing market.  It’s the perfect time to sell energy efficient replacement windows and doors.  Create a marketing message about your “home improvement bundles”, give your salespeople energy savings data, arrange financing and create some spring sales. For more information about The Home Energy Score Program is available at www.wddalliance.org or www1.eere.energy.gov/buildings/homeenergyscore/. The survey, Motivations For Home Energy Improvements, can be found in the links.

Sharon Aby
Beyond Ideas

Money Saving Trick: Knowledge is Power

We hear about it all the time…“A credit card processor walked in my door offering the lowest possible rate, but I was charged fees that we never even discussed!”  Or “They told me that I needed a new terminal because I was non-compliant!”  Or “I didn’t even realize I was signing a Merchant Agreement!”

Unfortunately, we hear these scenarios from merchants across the country every day.  But here’s the good news: it doesn’t have to happen to you!  Learning what to look for and knowing the right questions to ask will help you avoid falling into a merchant processing trap and empower you to make the best decision for your business when it comes to credit card processing.

The Trap: A Free Terminal
The Truth: Many door-to-door merchant services salesmen use the hook of a new terminal for free to convince you to sign with them.  Keep an eye out for a monthly supplies fee, a higher rate or other unnecessary fees the processor may charge to make up for it.  The truth is profit margins are so thin for most credit card processing companies that they simply can’t afford to give away a $300 to $600 piece of equipment.

Helpful Hints: Ask for a full list of the fees that you will be charged and make sure you understand the purpose of each.        

The Trap: An Affordable Lease on a New Terminal
The Truth: Many businesses who have never accepted credit cards are fearful of the cost involved to get started and a lease sounds like a great idea.  Here’s the problem: if you are paying a $30/month lease for 24 months, you will have paid $720 by the end of a lease and may not even own the equipment.  That’s more than the cost of some wireless terminals!

Helpful Hints: Ask for a comparison of the purchase price and the lease prices.  If the purchase price is a little more than you can handle, ask if it can be split up into a few payments and  you will get a much better deal in the end. 

The Trap: A Really, Really Low Rate
The Truth: This may be the most commonly used tactic in merchant processing sales, but the rate isn’t the only price you pay, not and all transactions are created equal.  In addition to your rate, you may also have transaction fees, authorization fees, AVS and CVV fees, batch fees, annual fees, monthly minimum fees, statement fees, customer service fees and more.  Every merchant account will involve some of these, but make sure you understand what they are and how much you will be charged.

Now for the truth on rates: the pricing structure for a swipe retail business will be very different from a key entered business in terms of pricing as a result of the risk associated with the type of transaction.  The farther you get from swiping the card and getting a signature, the more it will cost you.  A standard pricing schedule should include the following rates from lowest to highest: Qualified Debit, Qualified Credit, Mid-Qualified and Non-Qualified.  In some cases, a Rewards rate may also be available, but if not, rewards based cards will fall into the Mid or Non-Qualified categories.

Helpful Hints: If you ask if the rate is debit or credit, swiped or key entered, you may be surprised at the reaction you get.  Most door-to-door merchant processors don’t expect business owners to know enough to ask this question.  Make sure to get a copy of the full pricing schedule, including the categories above, before assuming that the low rate is true.

The Trap: You Need a New Terminal
The Truth: You probably don’t need a new terminal.  As long as your terminal is PCI Pin Entry Data (PED) compliant and is not proprietary, you should be OK. Your payment processor will have a list of all PCI PED compliant terminals.  If your terminal is compliant, most processors will be able to reprogram it for a low fee instead of requiring you to purchase a new one. 

Helpful Hints: There are only a handful of terminals that are no longer supported by their manufacturers, so you definitely need to do your research before throwing your terminal out and purchasing a new one for this reason.

In addition to watching out for these traps, you should also ask the following of processor you consider:

• What will my overall savings be over my current processor, not just the rate?
• What is the term of the Merchant Agreement?  Is there an early termination fee?
• What type of account will I be set up with, retail or key-entered?
• What per item fees will I pay?
• What annual fees will I pay?
• What monthly fees will I pay?
• How long will it take before I can see the money in my bank account?
• What is the availability of customer and technical support?
• How long have you been in business?  Can I have the names of a few current customers to call for feedback?
• Do I have the complete terms and conditions?
• How can I reach you if I have any questions?
• Can I have everything in writing to review before I sign anything?

It is no secret that the credit card processing industry is complicated and is a mystery to many business owners.  As a result, many credit card processing companies can be vague, sneaky and sometimes downright misleading when it comes to signing new accounts.  Next time a merchant processor approaches your business, avoid the above traps, ask the right questions and remember…if it sounds too good to be true, it probably is!

Work with a Provider NGA and WDDA Members Trust
Electronic Data Payment Systems (EDPS) has been providing fair pricing, important educational material and excellent service to NGA members since 2008 and to WDDA members since 2010.  In addition to full disclosure of all rates and fees, a comprehensive training session is provided before you begin accepting cards to insure the lowest processing rates. All members are also entitled to receive a complimentary savings analysis illustrating the savings available through this exclusive program.  Fax your statement to 866.528.3854 and a National Enrollment Specialist will contact you with the results.  To learn more about the NGA and WDDA member credit card processing program and other services available call 866.578.9740 or visit EDPS online at www.edpaymentsystems.com/partners/NGA or www.edpaymentsystems.com/partners/WDDA.

Ideal Way to Establish Goals

I’ve shared with you that annual company goals must be specific, measurable and focused, but that’s only part of the goal setting process. Annual goes can be established by the owner or president of a company, the management team, or a management consultant.  

What is the ideal way to establish company goals? By involving a number of management and employees at the start of each year, the goals will become the employee goals instead of management goals.

I’ve facilitated this goal setting process with clients. In these sessions, management states what is important and employees comment and contribute. Ultimately the goals are accepted by everyone involved. This team approach to goal setting has a bias for results, generates buy-in and commitment from all employees, and is often the most significant companyw ide change that can be implemented by any company.

This goal setting process really works!

Richard Voreis
Consulting Collaborative

Sell Customer Solutions Not Products

Most products or services are looking for a market.  You must stand out in the marketplace by creating solutions for real problems in your customer’s lives.

I did an unscientific survey of window and door dealer websites. I put on my customer hat and went looking for windows for our old house.  I was so confused and felt bombarded by products looking for customers. With few exceptions window and door dealer websites all look the same to me.

• OUR HISTORY
• ENERGY EFFICIENCY
• SECURITY
• WARRANTY
• COLOR AND GRID OPTIONS
• KINDS OF WINDOWS
• ALUMINUM
• FIBERGLASS
• VINYL
• WOOD
• MANUFACTURER CHOICES

So you’re looking for customers who want your stuff and I’m a customer looking for solutions to my situation.  We’re playing the Match Game.  I click in and out of the selections looking for a match until I tire of the effort and leave your website.

Reverse your perspective from featuring product solutions to customer solutions.  What is your customer’s environment?  Maybe it looks more like this:

• OLD HOMES
• NEW HOMES
• BADLY BUILT HOMES
• COLD CLIMATES
• HOT CLIMATES
• CUSTOMERS
• HOME OWNERS
• BUILDERS / ARCHITECTS
• REMODELERS
• HOA

If your perspective is that windows are fundamental, that is a basic necessity, then it stands to reason you’d also think a house is a house is a house.

I suggest dealers get a new perspective on windows.  There is no opportunity in windows being fundamental.  The opportunity is to show customers that windows are solutions to their lives and that you can create that.

Sharon Aby
Beyond Ideas