The Junction Crew, LLC: November 2011

Friday, November 11, 2011

theBuggy

"theBuggy" and I will be at your Southeast location very soon. Insulation Equipment, Training, Support, and Education in tow.

Come visit us electronically, call us, email us....whatever!

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Come see us.

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Recap: Benchmark Emailer "Always doing"

"If you always do what you've always done

you'll always get what you've always gotten"

A fact possibly, and it's TOUGH out their so it's something to consider. With pricing on products & services more competitive than ever, it's a feast for the bottom feeders or dollar swappers right now. The key to success in the "catfish market" is to shop & compare.

As an example, I recently heard that there were areas in South Florida that if your pricing for R19 in OC was more than 1.25/sq.ft.-you weren't getting the job. CRAZY -yes, but is it possible? Strangely enough, it is possible. You just need to consider doing something that you may have never done.

To explain, we'll let "the chemistry" speak again.
If a customer calls you looking for open cell foam:

What yield are you getting out of your current product? 14,000 bft? 15,000bft? More?
What price are you paying for your current product? $2,000.00/set or More?
How much is that product costing your company per inch? 0.12/inch? 0.15/inch?
Do you know what the aged R-Value of your OC product is? 3.6? 3.8? Or higher?

Any of the above that relate to a products chemistry can affect;

The number of SETS required to complete a job-
The cost per inch of the product you're spraying-
How many inches of your product required to meet the desired R-Value-
And most important, your ability to GET the job.

As an example, if the product you're currently spraying has a yield of 14,000 board feet per set, costs you 2,300/set delivered with tax, and has an R-Value of 3.6/inch; in order to apply an R19 for your customer you must apply 5.5 inches, or 6.5 inches to allow for trimming @ a cost of 1.04 per square foot just for material. Expensive? Maybe not in the past but if you need to compete with 1.25/sq.ft. installed-ABSOLUTELY.

So, let's do something you haven't done-consider another product. Shop & compare and expect variations dependent on the job. PRICE THE JOB, NOT THE SQUARE FOOTAGE! For the sake of my argument, let's look at another product (a very real product): a product yielding 14,000 board feet per set that costs you $2,400/set delivered with tax that has an R-Value of 4.2/inch. On the surface, its more expensive but: an R19 in this product requires 4.5 inches costing you 0.17/inch OR 0.77 per square foot with less clean-up, almost zero waste, and little or no trimming. Now-is 1.25 per square foot achievable? The answer is yes and there are other comparisons.

In closing-
DOING SOMETHING THAT YOU HAVE NEVER DONE MAY GET YOU SOMETHING YOU'VE NEVER GOTTEN!

A safe & happy Thanksgiving to you all & thanks for your continued support.
If I can help, you know how to get me.

Joe

Recap: Benchmark Emailer "Bidding"

Bidding?

The quintessential dilemma that we ALL face on a daily basis. Too high? Too low? Are we pricing apples to apples? Where is the competition going to be? In the past it certainly seemed easier but in this economy the competition is pulling no stops. For us all!

For the applicators out there, I have some suggestions that in the past seemed unimportant or unworthy of consideration however today I've found utterly necessary. In order to maintain a customers interest in our product one must cultivate current customers not pacify. I promote "the chemistry" that is sprayed polyurethane foam and I suggest you do the same. Promote its advantages, its efficiency, its performance, and seek options in what you price. Offer references and jobs that you've completed, pictures of those jobs, and bring samples & brochures of the product you apply.

Let "the chemistry" help you sell the job.
If a customer calls you looking for closed cell foam:

Price it as requested but take additional steps to EXPLAIN "our product" educating he or she and helping them understand the cost.
Thoroughly educate the consumer-this takes time, I know, but be a good steward and make sure they know what they're buying.
During this process, discuss possible alternatives & different ways to achieve the maximum efficiency and don't be opposed to use alternative traditional products in certain, less important areas.
Offer to apply open cell foam in lei of closed cell if budget is concern.
Maybe use OC in one area and CC in another.
Fiberglass batting in the walls with OC or CC in the attic
REMEMBER-The attic or crawl space will absolutely produce the best return on investment for the customer so,
focus on applying the foam where the customer is going to benefit the most.

It's tough out here and I know it but giving in and going the cheap route will not only hurt YOU but OUR INDUSTRY! Be a good steward folks.

As always, I'm here to help.

Joe

Recap: Benchmark Emailer "The Chemistry of Competition"

The Chemistry of Competition:

This month’s commentary is brought to you from an applicator in Texas who questioned me regarding the best way to compete with misconception. My response: With clarity, data, minimal emotion, and educational information that will level the playing field.

Simply put, FOAM IS FOAM. Do not buy the brand but buy a products performance, its data & quantified reports, and most importantly; its service to you AND your customer.

The chemistry: Every set you purchase contains an A&B side. Forgive my redundancy; this will all make sense shortly. The A side is Iso and you’ve probably considered, or used, one brands Iso with another brands polyol. It happens and I’m not here to judge as it is after all, the same isocyanate. The polyol or B-side is what “defines” a brand and how much of that single drum actually defines “the brand”. The manufacturer has minimal substitution options with the majority of the B-side but can affect a small portion producing what they feel is the best option. Flame retardants, surfactants, and petroleum substitutes among others make up the list however for them to claim a profound difference between products is chemically inaccurate. For you, as a for-profit business, to accept claims of this nature is NOT doing our industry OR, your business, any good.

How many times have you run into a situation whereupon a particular BRAND of sprayed polyurethane foam has your local municipality misinformed making the product you apply unacceptable? The inspector claims that “your foam is not ICC approved and theirs is,” despite data to the contrary. Or, maybe something a little more blatant; “our foam is made from completely different raw materials.” Don’t judge and don’t get caught up in the flack, your objective should be to correct, educate, inform, and provide accurate data. After all, you can’t blame the counties? FOR YEARS, applicators that bought into a particular contract or another WERE the authority regarding SPF. Data was new and provided by the BRAND and it was the only data available. Do not blame anybody here but strive to inform your local authorities of the truth.

Intumescent coatings: (an interpretation) Some brands have a current advantage over others and can claim they do not need a thermal barrier covering their product. How do you the applicator deal with this? It is a safety factor folks and I for one want the homeowners protected from potential problems. Regardless, the law is changing next year and in fact, those companies currently marketing that their product is approved without a coating are companies that were grandfathered in prior to the new burn test implementation. Simply put, under the current test NONE of the major brands pass the test.

What does this mean? I suggest that we focus on interpreting the code for our respective areas. Consider suggesting optional mechanical room layouts, optional attic & crawlspace design, and seek to get your builder to make slight adjustments in HOW he/she constructs a home. There is always another way but WE have to be willing to work a little. Round table discussions with inspectors to find solutions, informative emails to builders, architects, and engineers; and some outside of the box thinking is a good start. Foremost, take the time to sit down with YOUR inspector to gain an understanding of YOUR counties interpretation of the code. I've found that just about every county has a slightly different interpretation. Get the details and create a solution. Call me I'll help!

The competitive tool: The MSDS Report provides accurate data that will confirm the chemistry of a product and is easily comparable. If faced with a situation that implies inadequacy on YOUR products part, level the field with an MSDS Sheet of your brand and that of your competitor. The data will confirm that your product is nearly an identical twin to that of your competitor. NOW, bring along the Technical Data Sheet & the ICC Report if needed to further solidify your claim but the objective is to get the municipalities to understand that YOUR brand of preference is equal in chemistry to the brand that YOU are applying. Worst case, you’ll have to apply a different brand but again; the chemistry provides you with options.

If the salesman of the brand you apply is unable, or unwilling, to assist you, find another salesman. There are companies out there that WANT the opportunity to earn your business and they are doing it with competitive prices followed up with impeccable service. Seek the companies that WANT to earn your business but be assured with Johns-Manville & Certainteed now serious players in this industry, the conflict is going to eventually calm down and level out.

In closing, our current dilemma with coatings & the contract brands is a direct result of years of bad marketing practices and we should learn from this situation. Focus on the truth when selling your service, your preferred brand, and your name and lay it ALL out on the table. Good luck.

Recap: Benchmark Emailer "CHEAP"

CHEAP!-
To be, or not to be?

Folks,I had an altogether different topic chosen for this entry even going so far as giving credit to an applicator in Texas but, a recent incident prompted me to make an adjustment. My apologies to my Lubbock friend-its coming next. As to what prompted this adjustment, I'm not completely sure WHY but I do know this; the current economy and its affect on the public played a BIG role in it & a few unsavory tactics embellished it.
The economy? What does it give to;

the bargain hunter?
An abundance of deals.

the salesman?
A significantly tougher sell.

the manufacturer?
A smaller more attentive audience.

the equipment supplier?
More zealous competition.

the industry?
A chance to prove its mettle.

I decided because of this incident to change this months email.
The goal of this commentary is to strongly caution ALL of you that choose CHEAP without due consideration.
We'll preface the commentary with this: we're all trying to make a living in the toughest economy of our lifetime however:

Are you a bargain hunter always looking for the best deal?

Is whoever offers you the cheapest price who you tend to go with?

Do you find yourself looking for slight indiscretions in the invoice or the product solely seeking an additional discount beyond an already discounted price?
Do you look for mistakes that provide you an advantage?
Would you classify yourself as a wolf in sheep's clothing waiting for that mistake so you can capitalize on a weak supplier or salesman?
Do you thrive on conflict?
OR, are you one that cowers away from it?

Spray foam professionals BEWARE!

The world we seek income from is a VERY small world and your actions, if not properly considered, have consequences that will long overshadow your CHEAP price OR your receipt of that CHEAP product.

If a "would-be equipment buyer" purchases solely based on a cheap price, HOW does he PERFORM with the end consumer and does his/her performance affect the balance of the industry?

If a manufacturer sells their product CHEAP without service & support to back up the CHEAP sale. HOW does this impact the end consumer?

If an applicator's customer is seeking nothing more than the CHEAPEST price, what as does the applicator in question typically do?

There are those among us that will forgo long term residual income, OR support, merely to capitalize on A QUICK CHECK or A CHEAP PRICE.
WHY?
Instant gratification?

Fear of confrontation?
Living in the moment?
You run from confrontation?
It's easier to blame someone else?
An unrealistic view of your worth?
Need to pay the mortgage?
Or is it a game that you thrive on?

DO NOT FALL PREY TO THIS!

New applicators- The manufacturers and suppliers are offering HEAVY discounts on their products to attract your business and what is a CHEAP price may quickly followed by absolutely NO service to back up the sale. OR worse, they may not be around when you need them. Chose your purchases wisely because without the service to back up your purchase, YOU MAY QUICKLY FIND YOURSELF ON YOUR OWN!
Furthermore, if you are an applicator that continuously SELLS based on the CHEAPEST price for service & product supplied, I'll fill you in on a little secret. YOUR customers can read you like a book! Being cheap is chasing the quick dollar however, if you'll answer the calls when a customer complains-then continue on.

Suppliers- A CHEAP price may garner a sale but when confrontation comes, I highly suggest that you refrain from casting blame on an equipment manufacturer, the chemical manufacturer, or a salesman. The customer is supposedly always right, we already know this, but more often than not a very simple explanation exists that does not include blame. YOUR customer will greatly appreciate your standing up for the product or service that you sell and YOUR future depends on YOUR ability to handle confrontation.
In other words- Solve the problem and earn YOUR future business honestly.
Your salesman, equipment manufacturer, or chemical manufacturer worked very hard to sell that job, earn your business, & provide you with the service you deserve. YOU promised YOUR customer the same! Honor it and SOLVE problems rather than creating new problems for someone else!

The finale: As I've had the luxury, & lessons, of being involved with nearly every side of this situation in my professional career, I can tell you without a doubt that with every PROBLEM there is more often than not, a very simple solution. Seeking someone or something to blame rather than assisting YOUR customer in finding a resolution is NOT the method that will earn & maintain you long term business. To the contrary, I WILL absolutely guarantee you that it will hurt you far more than it will help.
Therefore ALL, be extremely cautious of the "crops you sew".

SO, if you are one of those BUYERS that look for those occasional problems or mistakes in order to garner a good price,
EXPECT POOR SERVICE BECAUSE THAT'S WHAT YOU DESERVE!

And, if you are a supplier with a propensity to offer the CHEAP price but at the sacrifice of quality service & at the moment of confrontation you cast blame on others-
EXPECT A MASS EXODUS FROM YOUR STAFF & YOUR CUSTOMERS!
And plan for a garage sale in the near future.

And if you are a manufacturer that sells cheap but will not back up your sale-

EXPECT FAILURE!

Recap: Benchmark Emailer "The State of Foam"

“The State of Foam: Dynamics101”

By J.A. Gayle-The Junction Crew, LLC

The fiberglass heavyweights, Certainteed and Johns-Manville, are now among the fray of competitors that currently exist in the spray foam industry. 3M purchased Polyfoam Products and word has it they are working on some additional supporting products for our industry. One can only wonder when the Pink Panther, clad in green, will be seen on the TV advertising Owens Corning spray foam.

What does this mean for you, the foam applicator?

Lapolla is recording losses, BASF & Dow products are oddly performing poorly according to applicators across the country, Demelac & Icynene are supposedly considering, and in some cases already, selling their products direct to applicators outside of their contract programs, Graco is cutting back on advanced distributors, and Gama is now producing their spray foam proportioners in the US. Add to that, the various efforts in play regarding compliance, thermal & ignition barriers, and the widely fluctuating interpretation of the building codes and you have the definition of dynamic. Movers & shakers unite. Currently less than 10% of ALL new construction commercial or residential use spray foam as the insulation or roofing product.

What can we expect if that figure doubles? Triples? Quadruples?

Folks, we are on the cusp of some serious growth in the spray foam industry. New home inventory is rapidly decreasing, foreclosures are rampant, and every builder out there is searching for “the new mousetrap” and the “greenest most efficient home” and nothing currently offered by other construction oriented manufacturers provides a more profound effect on a home’s energy consumption than spray foam insulation. Manufacturers are jockeying for every available customer out there “giving away the farm” to get you to buy their product. Cheap prices, no education, and poor service are prevalent. Corbond was acquired by Johns-Manville today. Certainteed is selling foam at historically low prices to capture an audience and the “original players” are sitting back capitalizing on the raw material sales. Who is next to be purchased? What existing suppliers are going to be the casualties of tomorrow?

What and how can you benefit from these variables?

Foremost, learn from history! For the better part of the last 30 years the construction industry has been populated by “warm bodies” (extremely specialized companies solely offering a cheap price and fast performance at the expense of quality). The industry is changing as these words are typed. HVAC companies that once performed plumbing are now adding that service back into their offerings. Framing contractors are now offering cornice & fascia, siding, decks, trim, and hardwood floors along with installing windows. Electricians have added whole house stereo, alarms, and automation to their list of services. Insulators are hanging sheet rock, painting, and doing trim.

Do you get the message? The trades are converging once again. The age of the specialist is gone! Those successful businesses who serve a single god are forced to offer more options at competitive prices with a strong focus on quality, efficiency, and performance. Do not fall prey to the quick dollar. Service your customer and reap the long-term reward of quality service. Craftsmen will survive this recession and true professionals will rise to the top. Quality, competitive pricing, educating your customer, and most importantly service will return to the forefront of defining what is true success. Chase the quick dollar and you’ll be advertising your equipment on Ebay soon or the repo man will be knocking on your door.

Offer options to your customers; alternative brands that have a better yield or R-value with technical data sheets & ICC reports, multiple references, and ask the manufacturer’s salesman to help you close the sale. Teach your applicators the basics of quoting prices so when that stray potential client walks up to your rig and asks questions, your applicators & laborers can always answer the question. Brag & put signs in yards, ask your customers to provide on your behalf referrals, testimonials, and ask for heating & cooling bills to compare with their neighbors. Do not succumb to the pressure of the quick dollar. OUR industry depends on you to be proactive, honest, and forthright in your business dealings and our collective success depends on you individually to act professionally.

Finally, be open, familiar, and mindful of competitive products. Go after the job that specifies a brand you don’t spray and find a price for that product. It’s out there, call me I’ll help. However, after providing the apples to apples comparison, offer your preferred alternative to the customer. Define, educate, and support your alternative based on it being less costly, a better performer, and involve the customer in the price savings. Offer to contact the HVAC contractor on their behalf regarding the load calculations & potential savings for their home & always walk away from the tight a$$ that is internet or gossip educated, as reason is beyond their understanding. Remember, bad press travels a significantly longer mile than good press and you can sit at home watching TV and lose money. Why work to do the same?

In closing-you are the face of this rapidly growing industry. Do spray foam the justice it deserves and provide the quality of service you’d demand yourself. The business and customers are there, the manufacturers that support this philosophy are there and; the suppliers, distributors, and consultants (The Junction Crew) are there and desiring nothing more than to earn your business.

The memory of a bargain is quickly lost to the reality of poor service so practice good stewardship as advocates for our industry and be patient, the business is coming.

Recap: Benchmark Emailer "Joe's Backpack"

"Joe's Backpack Marketing Plan"

Economy got you down?

Behind on a few payments?

Need a plan?

A little bit of forethought and some traditional marketing will produce results.

In every community there is a neglected demographic. One that has been ignored for the better part of 20 years and one that oddly provides YOU with an opportunity. Well built homes constructed in the 50's, 60's, or early 70's that in many cases are PAID for or at least in a fabulous position to borrow a little money for upgrades. I offer "Joe's Backpack Marketing Plan" for your scrutiny and embellishment.

Take your kids along with any and all of their friends out for a Saturday bike ride and load their backpacks with flyers for taping to every mailbox. With kids these days, a fee will be necessary of course so plan on offering 15, 20, 50, or 100 bucks to complete the task and pick them up on the other side of the neighborhood.
First customer to contract with you gets 15, 20, to 50% (?) off their application given that they provide your company with PRE-FOAM heating and cooling bills along with several months of POST-FOAM heating & cooling bills as part of your contract.
Get the job and don’t be picky with open or closed cell, just get the job!
Place signs in the yard, adds in the paper boasting about your upcoming project, fliers about your upcoming project in THAT neighborhood and do the BEST job possible. Remember-you are going after word of mouth advertising.
And patiently wait- Probably no more than one month or at least until the next power bill comes out and as one who’s been there, YOUR PHONE WILL RING.
Don’t skimp, don’t be greedy, and by all means treat the customer well
Seek county approval and any necessary permits of course and have the necessary answers and data sheets for all questions. When finished, your customer will brag, boast, and take every available opportunity to speak about how their energy bill has been SIGNIFICANTLY reduced and your NEW market will show its face.
REMEMBER-there are options that will better suit the customer. Don't marry yourself to a particular brand because options exist.
REMEMBER-Intumescent coatings may be required. DO YOUR HOMEWORK!

Join with an HVAC contractor and double team it if necessary but the business is there for the taking.