Being Proactive With Your Sweeping Business

We recently wrote an article featured in the Oct / Nov Issue of Pavement Maintenance & Construction.  Check out the full article below!

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.

But there can be a silver lining around this dark cloud of doom.  We believe that the answers are not found in burying your head in the sand and waiting for things to work themselves out.  Borrow the title from Rick Page's book, "Hope is Not a Strategy" and take this opportunity and time to be proactive in all aspects of your business.  We want to touch on a few strategies that are crucial to maintaining and successfully growing your business in tough times. 

Budgeting

A frequently asked question we get at Nite-Hawk Sweepers 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 you have 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 you can mitigate the impact on your business.

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 that knowing all of your costs gives you more flexibility in the pricing of the bids you are placing.

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, thereby leaving you with a smaller profit margin.  Run scenarios with your budget and margins to maximize your bottom line. Optimize what you have and concentrate on profitability, not overall revenue.

Marketing

When companies are looking to save money, one of the first cuts is often marketing.  What people can’t see, or don’t see is that marketing is an investment in future sales and market share.  Remember that new economic conditions, good or bad, create new opportunities.  Look at your market and evaluate what is the best way for your potential customers to find you.  Yellow pages, websites, brochures, ads, flyers, social networking...the list goes on and on.

It is important to remember the marketing you are already doing.  The shirts your employees wear, the appearance of your office or shop, the condition of the sweeper trucks you operate, and the quality of your service are all forms of marketing.  They create an impression in the minds of current and potential customers.  If you aren’t creating this impression proactively, then it will occur by default – and you may not like the results.

Create a marketing plan that is simple, clear, concise, and well thought out.  Your plan should be a document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whatever medium you decide to use, it's important to have a focused strategy to accomplish your goals.  Write down a simple plan, stick to it, review it, and never stop marketing!

Communication

We can’t emphasize this enough.  As frequently as possible and practical, make contact with your customers.  When interacting and building relationships, strive to understand their business and find ways that you can help them.  Property managers are under the same pressures you are to cut costs and save money.  Set yourself apart as a service provider.  Remind them that opting for the lowest priced contractor may be a short term solution with long term consequences.  Educate your customers about the sweeping industry.  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 properly educated, will pay a few bucks more to have the job done right.

While keeping in touch with your many customers, make sure you are doing it the “right” way.  It's important to decipher how your customers communicate and tailor your approach, without losing the advantages of making it personal.  One extreme is the tech-savvy entrepreneur that emails and sends text messages, but never makes a phone call - probably a model of efficiency, but losing that personal touch that separated him early on from the competition.  Have anything important to say?  Don't email it. Face to face contact is the best way to communicate, followed by a phone call.  Personal contact allows you to read the customer’s reaction and handle any concerns they have immediately.  Use email for follow-up and confirmation, not conversation.  

In the tough economy of today, it is not enough to simply react – you must be proactive.  Gain knowledge and experience through networking.   Know your business, know your competition, and be creative.  Now is the time  you should focus your efforts on all those things you know you should have been doing, but felt you were too busy get done.  Ask questions and don't be afraid to innovate. These principles, if effectively implemented and followed, will set you apart as an exceptional sweeping company.

Tracy Day

President, Nite-Hawk Sweepers

Jake Hoerman

Sales and Marketing, Nite-Hawk Sweepers

www.nitehawksweepers.com

  

How To Motivate Your Employees

Motivating Employees in Tough Times

I don’t claim to be a tremendous motivational speaker, but it is easy for me to get excited talking about business.  I especially enjoy working with small and medium sized companies, so dealing with sweeping contractors is right up my alley.  I love learning from our industry and have met some of the best people on the planet.  Lately it has come to my attention (and I’ll admit a little shockingly), that everyone may not share my enthusiasm for their own jobs.  However, this is only the case outside the Nite-Hawk family.  Our guys and girls generously offer to pay to work here, and I typically have to kick them out at the end of each day - despite their protest of “Please, can I work longer?”

If you aren’t in this situation and tend to find your people unmotivated, you may need to restructure your organization.  Understanding your employees is the key in motivating them.  From what I’ve observed, unmotivated employees fall into three general categories.  The first group can’t see a future.  The second group can see a future, but the overall structure is not in place to appropriately reward them.  Not only does this dampen the motivation of the employee, but also it prevents a company from achieving its objectives.  The last group falls into the camp in which no matter what structure is in place, they are just not going to give you any more.  The solution is relatively simple - fire, replace and focus your attention on the first two groups.

During tough times the first group focuses on the short term.  They think no matter what they do today, it won’t matter.  They may have been discouraged by presenting a good idea that never got implemented, a real or perceived lack of opportunity for advancement, a wage freeze, problems at home, or it may be they just need some extra attention.  These are good people looking for a reason to do better.  Sometimes they may not even realize they are stuck in a rut.  Straight forward and frequent communication, followed by action, will highlight the positives and will go a long way for these valued employees.  Reward forward thinking, and when an idea doesn’t seem to fit in the overall strategic plan, follow up to explain. Change pay structures to incorporate bonuses for real improvement based on measureable metrics.  Even if their base pay doesn’t rise, they will feel more in control of their situation. 

At Nite-Hawk we’ve held contests where the winner receives an Ipod for the best new manufacturing improvement.  It can be surprising how employees react when the company shows their appreciation.  Show them that you recognize their contribution to the team and take a genuine interest in their wellbeing.  If you don’t feel like this toward your team, look in the mirror and find a way, because you are one of the obstacles blocking their motivation. 

The second group is a little more straight forward.  As Cuba Gooding’s character Rod Tidwell said in Jerry Maguire, “Show me the money!”  Start by reviewing the compensation structure of your sales team, supervisors and whoever else falls into this camp and change the way they get rewarded.  Make sure they are accountable.   Reward for performance, not for potential.  Holding the line can be difficult, but it will weed out the team members that don’t want to perform, and provide a spark to the ones that do.  Every company is unique and there are thousands of different compensation structures to fit your business.   Search around and find one that works for you - and if you have any questions about it, don’t hesitate to contact me. 

People have written thousands of books on motivating employees.  I have outlined just a few things I’ve identified to help our team and sweeping organizations around the country.  Understanding and identifying your employees’ motivations is the key to developing a productive and efficient team.  Lead by example, and if you ever feel like you’re losing your motivation, maybe all you need is a shiny new toy.  Hey, I got an idea.  How about a new sweeper…….

NPE Show

Custom Wraps

Deember/January Newsletter

Thoughts from the Nest

HAPPY HOLIDAYS AND MERRY CHRISTMAS ,

This time of year always seems to fly by. Maybe it's the fact that the youngest of my 4 kids still believes in the "Santa phenomenon". She is only three, but singularly focused on obtaining as many presents as possible. To her, this goal is the real meaning of Christmas. If she still feels this way next year, I will have concluded that I have failed as a parent. It seems like things accelerate the older I get. It seems like only yesterday, (actually five years now), that for weeks leading up to Christmas, little items around the house mysteriously disappeared. I was especially alarmed when my new DVD of Monster Bulls (Elk Hunting stuff), strangely vanished. I conducted a grid by grid search of our house, even finding a long lost computer mouse in the couch cushions, but the DVD remained allusive. So after the usual grumbling I resigned myself to never seeing it again. Imagine my surprise and the feeling of silliness I felt that I had gotten upset over such a trivial thing, when upon opening a gift from my five year old daughter I found my DVD. She had been secretly procuring items from everyone in the house and wrapping them up and sticking them under our Christmas tree. She wanted to be part of the giving process also. Every time one of the family opened one of her gifts her little face lit up with excitement as we were genuinely happy and surprised at the gifts she had re-given us. At that moment, I was pretty thankful for having such a sweet kid. To this day thinking about the story still brings a sense of amusement and gratitude.

Time marches on and every year we put out a Nite-Hawk calendar and I move the old year's calendar down my office wall. It never occurred to me that I may run out of space on my office wall. Maybe that says more about the size of my office, but I prefer it to mean that we have been doing this for a while. I still feel like I am a young guy, but reality sinks in when I look in the mirror and notice far too many gray hairs for a 20 something year old. I am sure many of you whom I have known for 15 to 20 years feel the same. Your youthful enthusiasm is infectious and I hope that I have the opportunity to continue to work with you for many years to come.

With the state of the economy the last several years, we have seen many tough challenges for many in our industry. Many contractors continue to struggle at levels well below where they were only a few years ago. Hopefully, the really tough days are in the past and you can look forward to a bright and prosperous future. At Nite-Hawk we have been very fortunate and grateful for the opportunity we've had to meet some of you and work with all of you. I think we have a unique opportunity to work with contractors and hopefully act more like a partner than a supplier. Typically, in these newsletters we have tried to write something of substance that may help in your business. However, during this time of year, my hope is that we remember what is truly important in our lives and think about how we can make life better for those around us. If there is anything we can help with, whether it be sales, marketing, operations, finance, or just talking about the industry please don't hesitate to give us a call. Even if you never intend to buy a truck or aren't a current customer, we would love to talk to you and see if we can help. Personally, as well as from everyone here at Nite-Hawk, we wish you a warm and prosperous Holiday Season and renewed optimism for the upcoming year.

Happy Holidays,

Tracy Day, President

Finance Partner
Wells Fargo We have added Wells Fargo to our outstanding group of finance partners to offer some of the most competitive financing rates available. Depending on credit approval, Wells Fargo is offering historically low financing/lease rates on equipment. Financing should be a simple and stress-free process, so give us a call today to see how you qualify.

National Pavement Expo

Join us in Nashville February 2-5th for the annual NPE Show. From nationally recognized conference sessions to a packed exhibit floor and unprecedented networking opportunities, you'll find everything you need to make smart decisions for your sweeping and pavement maintenance business. Stop by our booth, #1432, to see the latest innovations in hydraulically powered parking lot sweepers with our NH Raptor and NH 200 Osprey sweeper models. It was nice to see many of you in sunny Las Vegas this weekend for the NPE West Show. Complimentary show passes are available per request via email at info@nitehawksweepers.com or toll-free at 800.448.9364.

Change is Good

Times have changed, has your truck? Advances in our patented hydraulic technology have made the auxiliary engine a thing of the past! The all new NH 200 Osprey comes equipped with the VFC hydraulic system, the same hydraulics used on the NH Raptor, allowing for performance and efficiency never before seen in a conventional sweeper truck. Our revolutionary NH 200 Osprey will improve your operating efficiency and give you the power to tackle any parking lot. Learn More » Or call us at 1.800.448.9364

Nite-Hawk Sweepers
8228 S. 206th Street
Kent, Washington 98032

September Newsletter

Thoughts from the Nest

CUSTOMER SERVICE: FILLING IN THE GAPS

Hopefully none you reading this just choked on your drink, (coffee if you're in Seattle) when reading the headline about customer service. The presumption that we at Nite-Hawk have done a good job of taking care of our customers is a scary one for me; in that the majority of unhappy customers don't complain, they just go somewhere else. There is a statistic in the hotel industry that only 2% of customers that have poor experiences complain. The other 98% just don't come back. The estimates for how much more expensive it is to acquire a new customer range from 5-20%, depending on which survey you read. The bottom line is that it's expensive to lose customers to poor customer service. Undoubtedly, you know this intuitively, but how to fill in the gaps to avoid being a casualty of this statistic? A small often overlooked suggestion is to understand communication mediums and their place in your business.

We all are surrounded by social networking sites, emailing and texting "smartphones", and the internet with all its advantages and pitfalls. It's important to decipher how your customers communicate and tailor your approach, without losing the advantages of making it personal. We have seen the two extremes in the sweeping business. The first is the tech-savvy entrepreneur that emails and tweets but never makes a phone call, probably a model of efficiency, but losing that personal touch that separated him early on from the competition. Have anything important to say? Don't email it. Face to face contact is the best way to communicate, followed by a phone call. Personal contact allows you to read the customers reaction and handle any concerns they have immediately. In addition, over-emailing puts you at risk of becoming irrelevant. Don't become spam. Help the customer invest in the relationship process through direct contact.

The second extreme is the very personable guy that thinks the cd tray on his computer is a cup holder. His customers love to talk to him, but they get frustrated by his inability to work electronically. He is able to read customers through direct contact but struggles with inefficiency. Customers want the best of both worlds.

Social networking sites can be very helpful in creating an image and communicating, but can also lead to unprofessional behavior and a lack of information control. Be careful of content that is posted and the perceptions that it creates. Actively control the information the best you can and don't be complacent on comments you make on your site. I am constantly amazed on what people will post, only to discover later that what they thought was funny or cute, was considered immature or unprofessional to a customer. If you are thinking about a blog then remember the 90-9-1 Rule. 90% of people that look at your site will be the audience, 9% will be the editors and that 1% will create the content. So what you think is the norm may really be the minority talking.

Understanding your customers' communication habits and mediums can help to create stronger relationships and prevent miss-communications. If you are not sure of your customers' interaction communication requirements, don't be afraid to ask. In the worst case, use the tool that got you started as an entrepreneur, your face to face sparkling personality.

Tracy Day, President

Maintenance Minute - Maintenance Log

A commonly overlooked, but important aspect of both vehicle and sweeper maintenance, is record keeping. A simple log and a few minutes to track your routine maintenance can give you information to plan budgets, reduce down time, and lower inventory costs. The maintenance log should list the date and service performed, as well as the technician responsible and the parts used. If you don't already have a Maintenance Log, click on the link here to download an example. Contact your individual equipment manufacturer for specific maintenance schedules. These logs should be keep on all your equipment, including blowers, sweepers, plows, striping and paving equipment, and pressure washers. The more accurate the log, the better your planning information will be.