September Newsletter

Thoughts from the Nest

"Helping Big Brother"

It seems like every article I read focuses on the tough budget situations that states like California are facing. As I try to understand why "x" county has a particular fiscal problem, I have to admit I'm a little torn. On one hand, my mom works with special needs kids at a local high school and is dependent upon Uncle Sam for her paycheck. I've seen what she does and believe me, she earns every penny. Then I see a bid specification sheet come down from some county with multiple needless options, (like heated mirrors in Northern California), and wonder why do our tax dollars go there? (For the record I tried to talk them out of it.)

Don't get me wrong, I believe the 'bid' process is a necessary evil for public disclosure, but I wonder how we got to the place where some of these options made it on the bid spec sheet. Maybe they're needed, heck, it could get down to 31 degrees in the Bay Area and you may very well need those mirrors heated. I'm a California boy and when I was 7 years old it snowed 1.5 inches and my parents rushed out to buy tire chains. It melted by noon. But seriously, sweeping a parking lot with a $200k CNG broom truck may be overkill, especially, when these units are typically not as efficient as virtually every parking lot air sweeper on the market, (present company included).

So what does this have to do with contractors? Look for opportunities to participate in the process. Many times municipalities order trucks off a regular specification sheets that are administered on a level well above the practical point of the operator. And giving them the benefit of doubt, I believe this is due to a lack of education. Many organizations, like NAPSA, are working to bring information to municipalities about the private sector. We can participate. Nobody knows how to sweep better, with the right equipment, than your private business. We can help our local and state governments understand the alternatives which can include private contractors.

In road sweeping, many industrial contractors are taking the initiative to educate and inform their local municipalities of the opportunities which exist for private contractors to perform this work. In parking lot sweeping, we are beginning to see school districts and small townships look to the private sector for these services as well. Many times contractors can do the work more efficiently, at a reduced cost, helping ease budget constraints. Municipalities will see their job base and tax revenue increase, reduce their operating costs, and leverage contractors to use the proper equipment without having to purchase their own.

At the very least, getting involved with how our tax dollars are spent, may increase the awareness and lead to changes in the future. It could take some time, but I hope to see you sweeping a city hall soon, with brand new heated mirrors!

Tracy Day, President

Accurate Financial Projections

Every sweeping business will need to make reliable financial projections at one time or another. This forecasting is critical at many stages of a company's life - when you are looking for financing, when you need to gauge the potential profitability of a new product or service, when you want to see the impact of staff expansion or cutbacks, or when you need to assess other important business decisions. Coming up with reliable projections isn't guesswork. It requires you to analyze market research, trends, and business assumptions to come up with a reasonable forecast. When you're done, you'll have a realistic idea of costs and profits. Tracking your budget is paramount in your business's fiscal growth and sustainability.

Maintenance Minute

Belt Tensioning of Main Hydraulic Pump (400-DX and 200-XLP models) Before tensioning the main pump belt: Check the pump bracket and tension rod for damage Check back hydraulic motor for tension and wear Check pulley alignment Tensioning the belt: Loosen the jam nut on the bottom of the tension rod. (On C2500jam nut is on top of tension rod) Tighten the tension nut down ¼-turn. Retighten the jam nut. Start the truck and set the pressure to 2000 psi. Depress the gas pedal and release to check for tension. If the belt squeals, repeat the process. Remember: Pump adjustments are critical to the performance and longevity of the system. Always tighten the belt in ¼-turn increments. Over-tightening the belt will void your warranty and could cause engine damage. The Nite-Hawk Raptor has the all new back side idler technology. This current innovation eliminates the need to tension the front belt, reduces belt maintenance and increases belt life. For more information on our state-of-the-art hydraulic system visit us at www.nitehawksweepers.com/advantages/video/

August Newsletter

Thoughts from the Nest

"Keeping Your Good People"

It seems like every article I am writing, begins with "In these challenging times...". I have to confess, it's getting a little old. I am naturally an optimistic person and am tired of writing about doom and gloom, so I thought I would talk about how successful companies retain their best people.

Instead of getting into the "nitty gritty" of pay structures for drivers, I thought I would speak to the broader aspect of retention. Most companies we speak to are not having trouble filling the driver positions. Keeping good managers happy and productive can be more challenging. Gone are some of the financial incentives businesses could offer in years past, as margins shrink. So how do you keep key employees happy and productive? Here is a simple suggestion that may help.

Keep them informed. It sounds simple enough, but as owners, many times we tend to internalize and restrict access to key information. I am not a psychologist and didn't stay at a Holiday Inn last night and so I won't venture a guess, I can just report on what I see. A key to retaining good people, when giving them more cash is not an option, is helping your top people understand the numbers.

Anybody who knows me gets tired of hearing, "if you don't know the numbers you will never maximize your potential". I have yet to see a wildly successful company that doesn't have some sort of budget in place. Show your people budgets versus actual and don't keep them wondering. Everyone, from the owner down, believes that someone is getting rich. I am not recommending this for all your people but, help the appropriate people understand where the money goes. By including them in the process they will take more ownership in the results. Help them understand all the hidden costs and those imposing taxes you pay. Then give them incentives that are based on achieving your numbers whether monetary or otherwise.

We know of a successful company with an outstanding manager, but every 3-4 months this manager would come to the owner and reiterate how good he was and why he needed to make more. Finally, after hearing this again, the owner showed him the entire budget and talked about where the money would come from. Once the employee believed the owner wasn't hording some pile of cash, he understood and got on board for the long haul. He then provided some valuable insight into where he thought some cost cutting measures could take place and some opportunities for growth. He bought into the process. Having information, even if it is not always positive, is better than no news at all.

By keeping people informed, in many instances, you have a better chance of retaining and letting them contribute as you ride through the roller coaster ride of an uncertain economy.

Re-evaluating Your Profitability

In the current economic climate increasing your profitability is a topic of concern to any small business owner. While some contractors are gaining business, many are trying to hold on to what they can. Evaluating the costs you incur to support your accounts may need to be revisited. To assess customer profitability, you will need to determine how much it costs your business to attract and sustain each account. A simple cost of sales analysis will give you a rough evaluation for your customer base. The 80/20 rule - that 80% of your sales come from the top 20% of your customers - applies to most small businesses. Remember that profitability does not necessarily correlate with the amount of money a customer gives to your business. In many cases, smaller accounts can be highly profitable, while large accounts can cost your company a lot to administer, therefore leaving you with a smaller profit margin. That large account you landed 18 months ago (and is 45+ miles away) may not be as profitable as originally scheduled on your route.

Maintenance Minute

Hydraulic Fluid and Return Filter Replacement Never replace hydraulic fluid when the engine or truck exhaust system is hot or warm. Remove the drain plug located on the bottom of the hydraulic reservoir. Completely drain all the fluid and replace the plug. Remove the bolts that hold the filter cap to the filter housing. Remove the "return" filter element and replace it with a Schroeder K10 Filter Element (NH part # HY-1300) and replace the cap. On the NH Raptor, an additional pressure filter element (NH part # HY-1350) should be replaced at the same time. This element is accessed by removing the lower housing of the pressure filter assembly. After installing the elements, refill the hydraulic reservoir to the center of the site gauge with AW 46 hydraulic fluid. NOTE: Do not run the pump until the reservoir has been refilled. This will void your warranty and could cause severe damage to your hydraulic system. Start the truck and allow the fluid to re-circulate through the system. If needed, refill the reservoir to the center of the site gauge.

July Newsletter

Thoughts from the Nest

A frequently asked question we get at Nite-Hawk is, "How do we compete in this tough economy against low bidders?" And to tell you the truth, the answer isn't easy and sometimes there's not a lot you can do. When your competition is willing to sweep for what you made 20 years ago in high school, working at local fast food joint, it can be brutal. It's tough not to be perturbed when you are spending 100 hours a week and every cent building your business, only to see someone who doesn't know their costs underbid and destroy the market. You can't stop the tide, but here are a few things you can do and mitigate the impact on your business.

First, educate your customers. Property managers are under the same pressures you are to cut costs and save money. However, reminding them that opting for the lowest priced contractor may be a short term solution with long term consequences. Does your competition carry the right insurance? Are they really doing the same quality job you're doing, or are they cutting corners? Are they using the proper equipment? Many property managers, if property educated, will pay a few bucks more to have the job done right.

Second, know your costs and limits. You must understand your costs fully to compete in a tough market. Know your variable costs, your fixed costs, and what type of economies of scale you can achieve by expanding your market. You can't afford to guess when every dollar counts. Know your margins, set parameters that are comfortable, and stick to them. You may find room in certain bids that allow for pricing flexibility. Run scenarios with your budget and margins to maximize your bottom line. Optimize what you have and concentrate on profitability, not overall revenue. 20% of your accounts may make up 80% of your profits.

And finally, know your competition and be creative. Know their strengths and weaknesses. We have seen successful companies lose business to low bidders, only to get the contracts back when they inevitably screw up. Keep in constant contact with your customers and make them aware of your willingness to step-in and help out (for the right price) when they are in a jam. Be creative in your presentations. Partner with other service contractors on bidding (i.e. pressure washing or landscaping) and give your customers additional options. Knowing your competition and their limitations, may help you in offering these additional services that could result in recapturing and retaining contracts.

Stay positive and good luck.

Tracy Day, President

NAPSA Volunteers

The North American Power Sweeping Association (NAPSA) depends on volunteers to manage the association and to develop and deliver programs and services that create value for you. Getting involved as a volunteer in NAPSA can help you build skills, learn from others and gain information that will further your personal and professional goals for years to come - and you'll strengthen NAPSA at the same time. Please contact NAPSA online at www.napsaonline.com or by calling 856.380.6845.

Maintenance Minute - Skid/Flap Adjustment

A simple way to keep your Nite-Hawk performing at its peak is to regularly inspect and adjust your pick-up head, flaps, and skids. This inspection should be part of your daily procedure with a focus on the skid, alignment, pick-up head, and length of the rear flap. Step 1: The skid (NH # PU-1601) and skid plate (NH # PU-0211) should be parallel to the top of the pick-up head. If the skid plate is out of adjustment, use a ¾ wrench to loosen the skid plate bolts and bring the skid plate back to parallel. Step 2: Next, inspect the skid for wear and damage. The skid should be a minimum of ¼" think in all areas, with no signs of cracking or fatigue. All the skid bolts should be tight and unbroken. Step 3: After inspecting the skid plates and skids, sight down the rear of the pick-up head for damage and alignment. Step 4: To check for flap wear, measure the distance from the ground to the bottom of the rear flap. This distance should be no more than 1/4". If an adjustment is needed, remove a skid spacer using a ¾" wrench. If the rear flap is uneven, remove enough skid spacers to eliminate all gaps. Over time, the flaps will wear and this process can be repeated. The flaps (NH # PU-1900) should be replaced when all skid spacers (NH # PU-1602) have been removed and the rear flap shows a gap of ¼". By following these simple procedures you can maximize the performance of your Nite-Hawk and extend the life of your pick-up head. For parts and service you can visit us on the web at parts.nitehawksweepers.com or call us at 800.448.9364.

June Newsletter

Thoughts from the Nest

It's no secret the economy is tough. The stories are predominantly the same regardless of where you live. Your customers ask you to do more for less, just as the government is trying to take more of what you earn. Some of the largest property management companies have declared bankruptcy, prompting many contractors to wonder if they will ever see the money owed to them. You may be facing the prospects of slimming down your work force and breaking the news to employees that depend on you for a living. Things look bleak all over.

I've talked to many contractors, and understandably, many are scared and depressed. But there can be a silver lining around this dark cloud of doom. I believe that the answers are not found in burying your head in the sand in fear and waiting for things to work themselves out. To borrow the title from Rick Page's book, "Hope is Not a Strategy". Be of good cheer! Use this opportunity and time to be proactive in all aspects of your business. Maybe it is a good time to expand into a new market. Or focus your efforts on all those things you know you should have been doing, but felt you never had the time, like a detailed budget. Find out where every penny goes, don't assume. Gain knowledge and experience through networking. Ask questions and don't be afraid to innovate. I am always amazed about what I learn from all of the creative entrepreneur contractors in our industry. At Nite-Hawk, we try our best to pass along information through portals like our new Partner Plus or put you in touch with a contractor willing to help.

Be grounded in realism, but remain positive. We all know that one happy guy who, despite tough times, is always upbeat. Being positive and energetic is contagious and will spread throughout your organization.

To many of you this probably sounds like a "Jerry Maguire memo" pep-talk, but at the end of the day I believe you can emerge stronger, wiser, and better prepared to meet the upcoming challenges by seizing the opportunities of today. Whether you're a current customer or not, we wish you continued success in the future. Please don't hesitate to call or email for any help or questions.

Tracy Day, President

Rusty & Earl - Coming Soon!

A few years ago we launched our first Clean Across America Tour with demonstrations of our sweepers in cities all across the country. We met contractors of all shapes, sizes, fleets, and backgrounds. Behind every great sweeping company there was a reliable operator and a dependable piece of equipment. Join Rusty & Earl, a sweeper driver and his trusty side kick, on their Adventures across America as they battle the elements and debris to clean up America. This newest installment to Sweeper Madness will be available this fall at www.nitehawksweepers.com/advantages/fun.

Maintenance Minute

The first episode in our new webcast series is a brief video demonstrating the proper way to adjust the relief valve. The relief valve works in conjunction with the rest of the hydraulic system to control the pressure needed to dump. The relief valve is factory pre-set at 900 psi and should only be adjusted after all the other possibilities have been exhausted. This instructional and entertaining video is available online at www.nitehawksweepers.com/advantages/video. If you have any other questions about parts or service you can call us as 800-448-9364.

May Newsletter

Thoughts from the Nest

At Nite-Hawk we build and sell the highest quality sweepers on the market. But it's not just our sweepers that make us who we are. We genuinely enjoy watching our customers become successful. It's nice to know our sweepers will do the job better and more efficiently than anyone else, but it's even more exciting to see when that translates into strong vibrant companies.

However, your equipment is only one large piece of your sweeping business. Please don't hesitate to ask us about any aspect of the pavement maintenance industry. Our goal is the same as yours. To either help you continue or become a successful profitable company. We are grateful to have the best customers in the world providing feedback, advice and sharing their business experiences with us.

If you have questions, or just want to run by some ideas, I or any of our staff at Nite-Hawk would be more than happy to speak to you. We can provide information on operations, finance, maintenance, human resources, advertising or virtually anything in between. Outlets like our new Partner Plus website are also helpful in providing examples and templates. No need to reinvent the wheel.

We have a passion for helping our customers succeed and are committed to making your priorities our priorities. And as Nite-Hawk moves toward the future, our team is eager to share exciting new innovations and opportunities with you. We'll continue to do our very best to provide you with the best products, warranty and service anywhere. We wish all current and potential customers the very best.

Enjoy our monthly newsletter and let us know if there are specific topics you would like to hear more about.

- Tracy Day, President

The Raptor Has Landed

Along with our best selling NH200-XLP and NH400-DX, Nite-Hawk introduces a new member to its potent product line, the all new Raptor. The revolutionary Raptor boasts a new innovative hydraulic power system that dramatically increases performance and productivity, without sacrificing our outstanding fuel efficiency. The Raptor's superior hydraulic system will change the way contractors view single-engine sweepers and their power capability; effectively eliminating the need for any auxiliary engine sweeper. For more information on our new Nite-Hawk Raptor and other models please visit us online at www.nitehawksweepers.com or give us a call at 1.800.448.9364.

Maintenance Minute
The recommended maintenance schedule for Tier III emission Isuzu NPR chassis have been increased for the following items: Lube, oil, and filter - 6,500 to 10,000 Engine Coolant - 26,000 to 30,000 Brake Fluid - 26,000 to 30,000 Transmission Fluid - 26,000 to 30,000 Differential Gear Oil - 26,000 to 30,000 Power Steering Fluid - 26,000 to 30,000 Wheel Bearings Grease - 26,000 to 30,000

Partner with Nite-Hawk

Whether you've been in business for 20 years or 20 minutes, Nite-Hawk Sweepers is dedicated to improving your business and increasing your bottom line with Partner Plus. Visit us online at www.nhpartnerplus.com for a tour of our new Partner Plus site. Sign up today and get the first 3 months free!

Maintenance Minute

Check out our new maintenance video on relief valve adjustment. For this and other service questions you can contact us at 800.448.9364 or visit us on the web at www.nitehawksweepers.com.