Runnin' with the Pack
Compiled by the Reeves Journal Staff.
March 9, 2006
There's a Contractor Service Group for just about every business.
Humans are social animals and, as such, they generally enjoy and receive emotional, psychological and physiological benefits from being around-or belonging to a group populated by-other humans.
Businesspeople are, of course, no different than anybody else. And they will want to align their companies with other, similar-minded companies and individuals in order to pursue a common goal: success. There is strength in numbers and, as many companies in the plumbing trade have discovered, there is also profit in numbers.
There are several leading groups out there ready to help p-h-c contractors take their business to the next level, and we decided to ask them a series of questions aimed at providing readers with an updated breakdown of who they are, why they exist, who the members are and why contractors should consider joining.
Think of it as "Rush Week" for plumbers. This is what we found out:
Construction Contractors' Alliance
Art Dexter, Chairman
Why does this group exist?
Formed in 1998, the Construction Contractors' Alliance represents PHCC's plumbing and mechanical new construction contractors specializing in commercial, residential, institutional and industrial work. CCA was established to serve a progressive group of larger p-h-c commercial and residential construction contractors to address their specific needs, according to Dexter, who has been the chair since February, 2005.
CCA's mission statement is, "To enhance the profitability and professionalism of the CCA members' businesses through education and networking opportunities," and the group accomplishes that via member benefits including two meetings a year for all members, seminars for middle managers, Webinars, an e-mail discussion list, focus groups for residential and commercial contractors and many networking opportunities
How many members are there and who is the "average" member?
"CCA typically has a membership of 25 business owners," Dexter said.
"However, with the addition of middle manager meetings, the value of membership is reaching an additional layer of company management. CCA members' business profiles are diverse. They include residential, commercial, industrial and institutional type of work. Sales volume ranges from $5 - to $90 million."
What sets it apart?
Dexter said CCA strives to be a progressive group that is one step ahead in the business world:
"Members are interested in knowing about construction and business management trends as early as possible so that they can be prepared and make any necessary adjustments in their businesses," he said. "New construction contractors are different than other contractors. CCA's strength is that it provides a forum for members to talk with other contractors who do the same type of work and face the same kinds of challenges. Educational seminars also are targeted specifically toward the new construction plumbing and mechanical contractor."
Goals for 2006?
During 2006, Dexter said CCA will be concentrating on these areas of development:
- Enhancing the value of bi-annual CCA meetings;
- Building on the success of middle manager seminars;
- Implementing the focus group concept for residential and commercial contractors;
- Focusing on targeted membership growth.
In addition, CCA also will be focusing on these five areas of interest: Workforce issues; construction methods; business practices networking/peer groups; industry/business evolution; and, education and personal growth.
Why should a contractor join?
Contractors should consider CCA membership if they have an interest in having access to education that is targeted specifically toward their type of business, Dexter said. "Also, to learn from some of the most progressive new construction contractors in the U.S. by sharing ideas, including what works and what doesn't work."
Where can you learn more?
Visit the CCA Web site at www.phccweb.org/servicegroups/cca.cfm, or call (800) 533-7694.
Nexstar Network, Inc.
Lisa M. Schardt, Business Enhancement Specialist
Why does this group exist?
Nexstar's stated goal is to "raise the bar" in the industries represented by plumbing, HVAC and electrical residential service providers. Schardt said the group was founded in 1992 by 16 independent contractors that knew there had to be a better way.
"And there is," Schardt said. "By following our proven business system, Nexstar will help you become more profitable, become the shop of choice for employees and deliver exceptional customer service."
How many members are there and who is the "average" member?
Schardt said Nexstar's members range from operations with two trucks to those companies that operate more than 200 vehicles: "We have strictly residential service providers and blended companies that offer service and new construction to both commercial and residential customers," she said. "We currently have more than 380 member companies. Nexstar is not looking to be the biggest organization-just the best."
She said Nexstar is pretty particular as to the businesses it offers membership to, tending to be exclusive to those who, "wish to be the best."
"We are not for everyone," she said. "We take a very personal, one-on-one approach with each and every member. We believe that each member has different goals and challenges-we do not offer a 'one size fits all' solution."
Because of the group's customized approach, Schardt said Nexstar boasts a 95 percent membership retention rate year after year.
What sets it apart?
"Our number one goal is retention-we believe in 'members first'." Schardt said. "We are committed to delivering the promise each and every time. Our members are our friends, not just a number on a map. We know our members by name. We are also 100 percent member-owned. That means when you choose to partner with Nexstar, all of the monies you invest in dues is reinvested back into your organization."
She said the group has invested millions of dollars into the research and development of its tools and systems: "We also are committed to the independent provider-we have no ulterior motive. We do not want to buy your company, sell your company, roll up your company or franchise your company. We want you to help you be the most successful independent contractor in your area."
Goals for 2006?
Nexstar's goals for 2006 include focusing on member retention, continuing development of its systems and managed, calculated growth. Also on tap are further development of marketing tools as well as business and succession planning tools.
Why should a contractor join?
"Why re-invent the wheel? We will teach you how to work ON your business-not IN it," Schardt said. "We have proven systems and tools that are available at your fingertips. Nexstar has the highest success and retention rate. It works."
Where can you learn more?
Visit the Web site at www.nexstarnetwork.com or call (888) 609-5490.
Plumbers' Success International
Mike Diamond, CEO
Why does this group exist?
Founded in 1999, Plumbers' Success International exists, according to Diamond, to, "provide plumbing contractors a significant edge over their competition."
"Our members receive proprietary tools, management expertise, marketing systems, new-age training methods, and buying clout," he said. "With these benefits, PSI members have built market dominance, granted themselves freedom of time, and secured financial independence."
How many members are there and who is the "average" member?
There are more than 400 members within PSI today, Diamond said. "And the average PSI member operates with three or more trucks, is one of the leading contractors in his or her market, and generates a profit well above industry standards."
What sets it apart?
Diamond said PSI is the only organization focused exclusively on residential service, and for the past five years, it has been on the forefront of change in how contractors conduct business.
"With our assistance, an entire generation of plumbers has advanced their way of thinking," Diamond said. "They see themselves as more than a man in a truck. They see themselves for what they are-true businesspeople. As their viewpoint has progressed, so have their results. There are more financially successful and wildly profitable plumbing contractors in PSI than any other plumbing organization in the world."
Goals for 2006?
"Our goal is simple," Diamond said. "PSI wants every member to succeed."
Why should a contractor join?
PSI only accepts goal-oriented contractors focused on enhancing their success and pushing their company forward. So if you are interested in financial security, freedom of time, and market dominance, you should look into your opportunity with PSI.
Where can you learn more?
To find out more information on PSI and its programs call (800) 505-8885. "In fact, if contractors call soon, they can receive our FREE Plumber's Success Kit," Diamond said. "It has a variety of tips and suggestions for contractors to begin improving their company immediately."
Quality Service Contractors
Charlie Wallace, Executive Director
Why does this group exist?
Established in 1994 by a group of PHCC service and repair contractors, QSC functions as a self-supporting business unit of the Plumbing-Heating-Cooling-Contractors National Association. QSC maintains its own Board of Trustees, budget and program/project priorities. All funds generated from its membership remain with the organization and they are used only for initiatives selected and approved by the membership.
The QSC mission statement is, "to provide the quality service contractor with training, technology, and professional development, resulting in superior client service and satisfaction." To these ends, Wallace said the group enhances both the industry's and members' reputations by originating and delivering timely and lively professional and educational training programs (Power Tools).
A few of the QSC member Power Tools include: Ultimate Service Agreement-a complete maintenance agreement program with implementation strategies; the QSC 2-Day Sales Boot Camp; 24/7 Resource Web site; QSC Marketing Program-Planning That Works; QSC Business Management Coach to help you with reviewing and improving your business; 'round-the-clock, coast-to-coast peer group networking; semi-annual Power Meetings; Web site "Discussion Lists"; the QSC BOSS Program-a 2-day basic-business training class; employment opportunities and QSC Webinars.
How many members are there and who is the "average" member?
Wallace said QSC currently has about 225 members on the rolls and the average member is a company employing six or seven techs. "We also have one-tech companies up to 125-technician companies," he said. "Each member has the desire to become one of the 'Best of the Best' service and repair contractors. It is our goal to help them achieve and maintain that."
What sets it apart?
QSC is non-profit so all the funding that is generated stays with QSC in order to produce Power Tools and meaningful education for the members, Wallace said. "QSC is open to all contractors and does not have territories for its members," he said. "We feel that everyone should have the opportunity to better themselves and their company. In doing this it also gives their employees the opportunity to earn a respectable income."
Goals for 2006?
On tap for 2006 is a heightened focus on internet technology and developing Web-based member services: "This enables members to participate from the comfort of their own office with minimal travel time away for meetings," Wallace said. "We also continue to develop traveling programs that we take to all areas of the country when the demand exists for a particular seminar topic."
Why should a contractor join?
"Whether they are a long-time business owner or just starting a business, QSC will provide the opportunity and necessary tools on the essentials of running their business more profitably, serving their clients more personally, enhancing their business image and meeting the challenges of an ever-changing world," Wallace said. "In addition, we sponsor Power Meetings twice a year which will help members at all levels of the industry to maximize productivity and profitability. These will expose contractors to unprecedented networking opportunities and they will be able to meet and speak with proven leaders. They will share their knowledge and expertise. Members can implement much of what is learned when they return home. QSC staff is second to none when it comes to offering outstanding customer service. We practice what we preach!"
Where can you learn more?
Visit our Web site at www.qsc-phcc.org, or shoot off an e-mail to Charlie Wallace at wallace@naphcc.org. You can also contact the group at (800) 533-7694.
The Service Roundtable
Matt Michel, CEO & President
Why does this group exist?
The Service Roundtable's driving idea is simply to help contractors improve. Launched in September, 2002 by a group of leading contractors, the group was charged with making best practices and business services affordable for any contractor.
"To accomplish the founders' charge, the company utilizes the Internet as a low cost means of delivering high value content," Michel said.
The mission of the Service Roundtable, Michel said, is, "'To help contractors improve their business and financial performance, leading to a profitable exit strategy.' In short, we help contractors increase sales and boost the bottom line in less time so that they will build a saleable business for themselves and their families."
How many members are there and who is the "average" member?
There are about 2,000 people using the Service Roundtable currently but, Michel said, the group's growth makes it tough to state a single number.
"Our average member generates $1.827 million in gross revenue. A quarter of our members have more than $2 million in sales. A quarter has less than $500,000 in sales," Michel said. "The average member operates with 12 trucks. However, nearly half operate with five or fewer trucks. One in five has only one or two trucks. In North America, we have members in all 50 states and most Canadian provinces. We also have members in Europe and Asia."
What sets it apart?
First, and perhaps foremost, membership in The Service Roundtable is $50 monthly-$600 per year: "That's turnkey-that's all," Michel said.
Other factors that set the group apart is that membership is open to all contractors and there is extensive use of Internet-based resources to bring the massage to the people.
"Our use of the Internet means we come to the contractor, at his desktop, 24/7/365," Michel said. " We do not require expensive travel, pricy hotels, or costly meetings.
Instead, the group encourages its members to attend existing industry meetings, particularly the fine trade association meetings that are open to all contractors. Which ties in with another important aspect of the group-it works with and supports industry trade associations. Many of its founders held-or currently hold-leadership positions with national trade associations.
Another interesting point is that, particularly in the HVAC industry, it's possible to apply co-op funds to the cost of membership, depending on local distributor policies. After co-op, the Service Roundtable can cost contractors only $25 monthly.
Goals for 2006?
On tap for this year are significant enhancements to the group's Web site along with the addition of a number of new services, further content refinement and improvement, improved opportunities to save money through member discounts, and more.
Why should a contractor join?
"The best reasons to join are stated by the scores of member testimonials. These can be found at www.ServiceRoundtable.com under the blue 'Testimonials' tab at the top of the page. You will read real comments from real contractors," Michel said.
One way to try the Service Roundtable on for size would be to pay a visit to the Web site and download the free eBooks, "50 Comanche Marketing Tips for Building Your Service Business" and "100 Simple Practices Every Service Business Should Perform."
Where can you learn more?
Visit the Web site at www.ServiceRoundtable.com, or contact Michel via e-mail at matt.michel@serviceroundtable.com. The Web-impaired can also contact the group at (877) 262.3341.88888
Union-Affiliated Contractors
Bud Riestenberg, Chairman
Why does this group exist?
Launched in 1999, UAC is the first enhanced service group within the PHCC. Its membership is very diverse across the U.S., with significant membership in Nevada. The group's mission statement is "To establish, maintain and nurture a working relationship between the United Association employing segment of PHCC-National Association and the United Association (UA)."
How many members are there and who is the "average" member?
UAC members are union signatory contractors. Size varies from one person residential shops to the large commercial and industrial shops, Riestenberg said: "There currently are 314 members and 35 trade associates."
What sets it apart?
The UAC is strictly for union signatory contractors and addresses the specific needs of that group. Examples of recent UAC activities include teaming with the UA to create the National Residential Plumbing Agreement, a program that allows contractors to compete in this lucrative market.
"Working together, UAC and UA established the Plumbing Council to promote expanding relationships between UA locals and contractors' associations," Riestenberg said. "Having contractors participate in strong associations locally and nationally will enhance the success of the organized sector of the industry.
Goals for 2006?
"UAC is recognized as the representative of the union-affiliated plumbing-heating-cooling contractor by everybody in the industry," Riestenberg said, noting that 2006 goals include: Partnering with the UA in a proactive way; remaining the voice of the union-affiliated plumbing-heating-cooling contractor to the UA and furthering the success, professionalism, and leadership role of the union contractor.
Why should a contractor join?
"The UAC provides many membership benefits, including a unified voice for the signatory contractors within PHCC to make sure unique issues are addressed and interests represented," Riestenberg said. "And the opportunity to meet with UA leadership on a regular basis to discuss the views of the PHCC signatory contractors. Any union signatory contractor with a desire to improve his or her business, as well as have a greater voice with the UA, should be a member of UAC."
Where can you learn more?
Point your Web browser to www.uac-contractors.org, or call (888) 997-0535.
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