"When the Going Gets Touch, the Tough Get Going"

B

buda

New member
Believe it was Franklin D Roosevelt that coined that phrase during the Great Depression or WW II.



Almost every detailer I speak with these days says the same thing: "Times are really tough, unemployment is too high, business is lousey, it is this darn economy."



In sone sense it is good that we can agree on something, except for one small point: there are opportunities in touch times that good detail businessmen can take advantage of to get maximum profits..



In spite of slow sales, a good businessman can be creative to reduce expenses, tighten the belt, eliminate the marginal customers and emphasize the profitable aspects of their business.



The universal law of business is that inflow must be great than outflow. So, when your sales are down. a good businesman finds ways to manipulate the variables.



Here are some ideas that can help you cut expenses:



REQUEST A CUT IN RENT



As we said, times are tough for everyone, including landlords. Many businesses have shut down these past 3 years, and nothing looks worse than a closed storefront. If you are a good tenant, and have been in the same place for a number of years and you have always paid your rent on time. In short the landlord does not have to worry about you "stiffing him." You might have even told him when the lease expires next year you will renew.



So, why not ask for a temporary rent reduction to help you through this down period, maybe for the remainder of your current lease. (personally I can tell you it works, I did it with our landlord when times were tough in 2008 and 2009 and he did it).



Let him know why business is temporarily down and that you are confident it will pick up and that you simply need a break to stay in business. As a good, reliable tenant you deserve some consideration.



CUT EMPLOYEE HOURS



Always a drastic move when you have employees who need work. But sometimes it is necessary to survive. Know what your target profit pint is, because you should never be just a breakeven, you always need to make a profit. Reduce full-timers (40 hours) to 35 hours. Cut part-timers from say 20 hours a week to 15.



Giving employees a few extra hours for themselves is not a bad thing, if you explain why you have to do it, that you must do things to insure the company can stay in business.



To make the most of these reduce hours, open an hour later and close an hour earlier. Whatever needs to be done, needs to be done to survive.



This does not mean you do not take care of your customers. Take advantage of anything you can. If you own your building fight for a tax rebate, based on the fact that property value has gone down. Petition your utility companies for better pricing, they can do it.



And, for suppliers, the iron law of buying is that there is no bottom. Your suppliers are hurting just like you and so too are their chemical companies, so everyone is looking for a deal. You are the ultimate end-user for the chemical company and the distributor, exert your buying power, there is margin in chemicals and detail supplies.



TAKE LESS SLARY FOR YOURSELF



What this does is show your employees that you are willing to put the company profit above your own personal welfare. Goes a long way in conveying to them that they too should not complain about a lower paycheck. And it forces you to be disciplined. I hope that your current life-style allows you to cut back, namely that you are not living on every cent that comes in the door and then some.



Reduce your newspaper subscription from 7 days to 4, like Thursday through Sunday. Cut back on your cable service, dump HBO, Showtime, etc. Cut your own grass.



You may even want to encourage your spouse, if she is not working, to take a part-time job. Certainly any children you have over 16 should find a part-time job, if possible.



You may even want to sell your late model car or truck and buy an older one, who do you need to impress? Certianly no one in these tough times.



Increase your health insurance deductible to $2500 and be sure to stay healthy. Stop smoking, that will save at least $5.00 a day.



If you can do most of these thing you can reduce your yearly outflow by several thousand dollars a year.



As I said, "Tough times require toughness." Start today to dig in and bulldog your way to more profits.



Regards

Bud Abraham
 
Anyone running a business should, at this point, have already made necessary adjustments to continue to survive and some of these are a bit obvious and have already been done. Sometimes business owners focus so much on the numbers that they forget about the people.



Bud, you said "eliminate the marginal customers", but then suggest becoming the marginal customer to those providing you products and services. Do you offer discounts to those who simply ask for one? What is your opinion of them when they ask? If you business is experiencing hardship, then those providing your supplies are also likely feeling the same hardship, perhaps on a greater level if other business they supply are closing. What will you do when they close their doors? Your landlord may agree to a decrease, but are you willing to pay the same % increase on your renewal? That would be fair, as it is essentially an interest free loan to you.



Viewing employees simply as a cost is the single biggest mistake I see businesses of all sorts make. Being told your hours are being cut causes a similar feeling of resentment as being laid off. You might save some money on payroll, but I almost guarantee you are losing somewhere else. Most likely in productivity. Don't be afraid to inform your employees of the situation and what might be necessary in order for the business to survive and let them know that affecting them in a negative way is what you are trying to avoid. Some employees may be willing to work less hours for a while to focus on something else. They may have ideas on how to cut costs, increase business or productivity that you never thought of. In any case, if they think it is their idea they will be behind it 100% and make it work if it can. If not, then when you are forced to make those cuts in their hours and pay they will have tons of respect for you knowing you did everything you could to avoid it.



I highly recommend viewing this thread, then go out and buy the book if you haven't read it already.

http://www.autopia.org/forum/hot-tub/137447-essential-book-detailing-life.html
 
Nth Degree said:
Anyone running a business should, at this point, have already made necessary adjustments to continue to survive and some of these are a bit obvious and have already been done. Sometimes business owners focus so much on the numbers that they forget about the people.



Bud, you said "eliminate the marginal customers", but then suggest becoming the marginal customer to those providing you products and services. Do you offer discounts to those who simply ask for one? What is your opinion of them when they ask? If you business is experiencing hardship, then those providing your supplies are also likely feeling the same hardship, perhaps on a greater level if other business they supply are closing. What will you do when they close their doors? Your landlord may agree to a decrease, but are you willing to pay the same % increase on your renewal? That would be fair, as it is essentially an interest free loan to you.
Click to expand...



:sign



Viewing employees simply as a cost is the single biggest mistake I see businesses of all sorts make. Being told your hours are being cut causes a similar feeling of resentment as being laid off. You might save some money on payroll, but I almost guarantee you are losing somewhere else. Most likely in productivity. Don't be afraid to inform your employees of the situation and what might be necessary in order for the business to survive and let them know that affecting them in a negative way is what you are trying to avoid. Some employees may be willing to work less hours for a while to focus on something else. They may have ideas on how to cut costs, increase business or productivity that you never thought of. In any case, if they think it is their idea they will be behind it 100% and make it work if it can. If not, then when you are forced to make those cuts in their hours and pay they will have tons of respect for you knowing you did everything you could to avoid it.
Click to expand...



:werd: This is what they teach you in entry level personnel management courses; it is often best to make other cuts long before doing anything that affects employees getting paid... and make sure they know what you're doing and why.
 
And as an American Hero is credited with saying and I love====



"Life is tough! It's even tougher if you are stupid!"



Forget having ego trips, just use gained knowledge and logic, then apply what you have learned.



It has worked for centuries by many.



Grumpy
 
DEGREE:



THANK YOU FOR YOUR THOUGHTFUL POST TO WHICH I WOULD REPLY:[



QUOTE=Nth Degree;1458157]Anyone running a business should, at this point, have already made necessary adjustments to continue to survive and some of these are a bit obvious and have already been done



IF YOU HAVE MADE THESE ADJUSTMENTS OR SOME OF THEM AND ARE SURVIVING AND HOPEFULLY FLOURISHING IN THE DETAIL BUSINESS THEN YOU ARE TO BE COMMENDED. HOWEVER, MY EXPERIENCE IN TALKING WITH DETAILERS ALL OVER THE USA AND CANDAD DAILY IS THAT MANY OF THEM ARE STRUGGLING AND HAVE NO IDEA WITH TO DO. YOUR COMMENT THAT THESE SUGGESTIONS ARE OBVIOUS IS UNTRUE IN MY EXPERIENCE. AND, THIS IS NOT JUST TRUE OF DETAILERS, BUT OF CAR WASH OPERATIONS; MECHANICS; DRY-CLEANERS; BODY SHOPS, ETC. TOUGH TIMES REQUIRE TOUGH DECISIONS THAT MANY BUSINESSES ARE NOT CAPABLE OR READY TO MAKE.





Sometimes business owners focus so much on the numbers that they forget about the people.



AS WELL, AS IS EVIDENCED ON THIS FORUM AND ALL THE OTHER DETAIL FORUMS THAT FOCUS IS PLACED ON THE TECHNICAL ASPECTS OF DETAILING RATHER THAN THE BUSINESS ASPECTS OR THE PEOPLE. JUST LOOK AT THE POSTS ABOUT WAXES, SEALANTS; EQUIPMENT, PROCESSES VS HOW TO RUN YOUR BUSINESS.



AS WELL LOOK AT THE POSTS ON AUTOPIA ABOUT EMPLOYEES THEY DO NOT REFLECT A VERY POSITIVE ATTITUDE ON THE PART OF DETAILER BUSINESS OWNERS TOWARD EMPLOYEES.



Bud, you said "eliminate the marginal customers", but then suggest becoming the marginal customer to those providing you products and services.



THAT IS NOT WHAT I SAID, THAT IS WHAT YOU INFERRED FROM WHAT I STATED. WHAT I SAID WAS THAT AS A GOOD AND REGULAR CUSTOMER OF A GIVEN SUPPLIER YOU HAVE THE RIGHT TO ASK FOR BETTER PRICING ANYTIME, BUT ESPECIALLY IN TOUGH TIMES. THE SUPPLIER DOES, OR SHOULD KNOW WHAT THEIR REQUIRED TARGET PROFIT POINT IS AND IF YOUR ASKING FOR A DISCOUNT PUTS THEM BELOW THAT THEY CAN REFUSE, AS YOU AS A DETAILER SHOULD REFUSE TO DO IF A CUSTOMER WANTS TO PAY YOU LESS THAN YOU CAN TAKE AND MAKE YOUR TARGET PROFIT POINT.



CAN I ASK WHAT THE TARGET PROFIT POINT OF YOUR BUSINESS IS? YOU KNOW PERCENTAGE OF GROSS SALES?





Do you offer discounts to those who simply ask for one?



NO!!







What is your opinion of them when they ask?



NOT SURE I HAVE AN OPINION OF THEM BASED ON THEIR ASKING FOR A DISCOUNT. WHY DO YOU ASK THAT QUESTION?

BY THE TIME I GET TO FINAL PRICE WITH A CUSTOMER I HAVE A PRETTY GOOD IDEA OF WHAT KIND OF CUSTOMER THEY ARE BY WHAT THEY SAY AND ASK IN THE DIALOGUE. I ALWAYS TRY TO SIZE UP A CUSTOMER. ARE THEY A TIRE-KICKER, CAN THEY REALLY AFFORD TO BUY WHAT THEY ARE ASKING ABOUT. A GOOD SALESPERSON KNOWS HOW TO SIZE UP A CUSTOMER AND CUT TO THE CHASE RIGHT AWAY.





If you business is experiencing hardship, then those providing your supplies are also likely feeling the same hardship, perhaps on a greater level if other business they supply are closing.



THAT IS LIKELY VERY TRUE, AND I AM SURE THERE ARE MANY DETAIL SUPPLY COMPANIES THAT HAVE CLOSED BECAUSE OF THE HARD TIMES THESE PAST 3 YEARS. BUT AGAIN, THEY KNOW THEIR TARGET PROFIT POINT AND SHOULD NOT SELL BELOW THAT POINT. IF THEY DO NOT KNOW THEIR COSTS OF DOING BUSINESS THE PROBABLY ARE OUT OF BUSINESS AS MANY BUSINESSES DID FAIL THIS PAST 3 YEARS.





What will you do when they close their doors?



LIKE YOU I WILL FIND ANOTHER SUPPLIER, AND HAVE DONE SO DURING THESE PAST 3 YEARS.



Your landlord may agree to a decrease, but are you willing to pay the same % increase on your renewal? That would be fair, as it is essentially an interest free loan to you.



GOOD POINT. I DID JUST THAT. HE GAVE ME A REDUCTION IN MY RENT BY 50% BUT ADDED IT TO THE END OF MY LEASE, THAT IS, EXTENDING MY LEASE BY A FEW YEARS TO MAKE UP FOR THE REDUCTION. IT WAS WIN-WIN FOR BOTH OF US. HIS BUILDINGS AND PROPERTY ARE COMPLETELY PAID FOR AN HE HAS TWO OTHER TENANTS IN THE BUILDINGS THAT PAY A GOOD RENT. THE ONLY EXPENSE HE HAS ARE PROPERTY TAXES AND MINIMAL MAINTENANCE ON THE PROPERTY. HE IS RETIRED IN ALASKA.



Viewing employees simply as a cost is the single biggest mistake I see businesses of all sorts make.



IF YOU HAVE READ ANY OF THE ARTICLES I WRITE ON PERSONNEL IN A DETAIL BUSINESS YOU WILL KNOW THAT THIS IS NOT MY PHILOSOPHY OF PERSONNELL MANAGEMENT. EMPLOYEES WITHOUT A DOUBT ARE THE MOST IMPORTANT ASSET A BUSINESS HAS. IF YOU WOULD LIKE TO READ SOME OF THE ARTICLES I HAVE WRITTEN ON EMPLOYEE MANAGEMENT I WOULD BE HAPPY TO SEND THEM TO YOU. SEND YOUR EMAIL ADDRESS TO buda@detailplus.com





Being told your hours are being cut causes a similar feeling of resentment as being laid off.



BUT BETTER THAN NOT HAVING A JOB AT ALL.



You might save some money on payroll, but I almost guarantee you are losing somewhere else. Most likely in productivity.



OBVIOUS, BUT MY COMMENTS ASSUME THAT YOU HAVE DISCUSSED YOUR DIRE SITUATION WITH THE EMPLOYEES AND HAVE CREATED A POSITIVE WORK CULTURE IN THE BUSINESS IN THE FIRST PLACE.





Don't be afraid to inform your employees of the situation and what might be necessary in order for the business to survive and let them know that affecting them in a negative way is what you are trying to avoid. Some employees may be willing to work less hours for a while to focus on something else. They may have ideas on how to cut costs, increase business or productivity that you never thought of. In any case, if they think it is their idea they will be behind it 100% and make it work if it can. If not, then when you are forced to make those cuts in their hours and pay they will have tons of respect for you knowing you did everything you could to avoid it.



THAT IS EXACTLY WHAT I INTENDED TO SAY, THAT YOU HAVE TO HAVE A POSITIVE CULTURE IN YOUR BUSINESS WITH EMPLOYEES IN THE FIRST PLACE. IF I DID NOT MAKE THAT CLEAR THEN I THANK YOU FOR CLARIFYING THAT IN YOUR STATEMENTS. UNFORTUNATELY AS I READ POSTS FROM DETAIL BUSINESS OWNERS HERE ON AUTOPIA AND OTHER FORUMS IT IS CLEAR THAT MOST OWNERS SEE EMPLOYEES AS ENEMIES RATHER THAN ALLIES.



I highly recommend viewing this thread, then go out and buy the book if you haven't read it already.

http://www.autopia.org/forum/hot-tub/137447-essential-book-detailing-life.html[/QUOTE]



THANK YOU WILL CHECK IT OUT AND LET YOU KNOW WHAT I THINK OF THE BOOK



REGARDS

BUD ABRAHAM
 
buda said:
UNFORTUNATELY AS I READ POSTS FROM DETAIL BUSINESS OWNERS HERE ON AUTOPIA AND OTHER FORUMS IT IS CLEAR THAT MOST OWNERS SEE EMPLOYEES AS ENEMIES RATHER THAN ALLIES.
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Not completely true. They're actually being quite realistic with that approach.



In this day and age the younger demographic who are most often going out for jobs at car washes and detail shops just don't have the same work ethic or amount of pride in workmanship that prior generations had. It's hard to find people who are dedicated to doing their best, especially when we're talking about jobs that do not typically offer a lot of monetary compensation and are constantly demanding both mentally and physically.



With those factors in mind, it can be very difficult to find ways to turn an "enemy" into an "ally" and even if you can successfully make that conversion, it would be foolish not to still put safeguards in place to protect your interests as a business owner. Even your closest allies can and will turn on you if they are desperate enough. Not to mention the old saying, "Keep your friends close, but your enemies closer."



I'm not saying it's bad to trust people, but it's ABSOLUTELY bad to trust people too much (or too little).
 
shiny lil detlr said:
not completely true. They're actually being quite realistic with that approach.



In this day and age the younger demographic who are most often going out for jobs at car washes and detail shops just don't have the same work ethic or amount of pride in workmanship that prior generations had. It's hard to find people who are dedicated to doing their best, especially when we're talking about jobs that do not typically offer a lot of monetary compensation and are constantly demanding both mentally and physically.



With those factors in mind, it can be very difficult to find ways to turn an "enemy" into an "ally" and even if you can successfully make that conversion, it would be foolish not to still put safeguards in place to protect your interests as a business owner. Even your closest allies can and will turn on you if they are desperate enough. Not to mention the old saying, "keep your friends close, but your enemies closer."



i'm not saying it's bad to trust people, but it's absolutely bad to trust people too much (or too little).
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charles



did you not read what the poster i was replying to said about what he thought my attitude about employees was????



How many employees do you have?



And, if the employees today are that bad don't hire that kind of employee.



I can to differ with you there are many, many good people out there looking for work. High school kids; college kids; ethnic minorities you just have to take the time to interview and find them.



It sounds to me like you are making an excuse for hiring employees. Or, is it you just like to disagree with everything I post? Just a thought



bud abraham
 
buda said:
DEGREE:



THANK YOU FOR YOUR THOUGHTFUL POST TO WHICH I WOULD REPLY:



MY EXPERIENCE IN TALKING WITH DETAILERS ALL OVER THE USA AND CANDAD DAILY IS THAT MANY OF THEM ARE STRUGGLING AND HAVE NO IDEA WITH TO DO. YOUR COMMENT THAT THESE SUGGESTIONS ARE OBVIOUS IS UNTRUE IN MY EXPERIENCE.



AS WELL, AS IS EVIDENCED ON THIS FORUM AND ALL THE OTHER DETAIL FORUMS THAT FOCUS IS PLACED ON THE TECHNICAL ASPECTS OF DETAILING RATHER THAN THE BUSINESS ASPECTS OR THE PEOPLE. JUST LOOK AT THE POSTS ABOUT WAXES, SEALANTS; EQUIPMENT, PROCESSES VS HOW TO RUN YOUR BUSINESS.



AS WELL LOOK AT THE POSTS ON AUTOPIA ABOUT EMPLOYEES THEY DO NOT REFLECT A VERY POSITIVE ATTITUDE ON THE PART OF DETAILER BUSINESS OWNERS TOWARD EMPLOYEES.
Click to expand...



Bud,



Your original post simply didn't convey the depth of thought that you cleared up. And since you stated that many owners you come across have no idea what to do indicates that they also will not infer from your advice what was intended. Since the majority of focus is on the tech side, people skills tend to be a little lacking, thus the general opinion of employees of their bosses. Even in the customer service industries the art of people skills has suffered, in part because people put little value in the service, they just want the cheapest price. But that is a whole other discussion.



I agree that those running businesses can benefit from more focus on improving their business practices as much as their technical knowledge. Detailing forums are dominated by enthusiasts and weekend warriors rather than the full scale business owners. This is why the focus is what it is here. Those looking for general business advice will likely seek it elsewhere.



I am glad you had more thought and understanding to your advice. Your posts tend to draw a lot of flak. If your intention is to simply vent, then the pieces fall where they may. If you are trying to advise, keep in mind what people WANT to learn, not what YOU want to teach. "Never try to teach a pig to sing. It wastes your time and it annoys the pig." - Mark Twain



Edit: And after I posted this I read your response to Charles. If you choose to attack and question everyone who comments on your posts, you get what you deserve. If you are so highly respected in the field then you advice will stand on it's own. If you are confident in your knowledge then you have no reason to defend yourself. "Better to be silent and thought a fool than to open your mouth and remove all doubt." - Abe Lincoln. (unknown original source)
 
nth degree said:
bud,



your original post simply didn't convey the depth of thought that you cleared up. And since you stated that many owners you come across have no idea what to do indicates that they also will not infer from your advice what was intended. Since the majority of focus is on the tech side, people skills tend to be a little lacking, thus the general opinion of employees of their bosses. Even in the customer service industries the art of people skills has suffered, in part because people put little value in the service, they just want the cheapest price. But that is a whole other discussion.



I agree that those running businesses can benefit from more focus on improving their business practices as much as their technical knowledge. Detailing forums are dominated by enthusiasts and weekend warriors rather than the full scale business owners. This is why the focus is what it is here. Those looking for general business advice will likely seek it elsewhere.



I am glad you had more thought and understanding to your advice. Your posts tend to draw a lot of flak. If your intention is to simply vent, then the pieces fall where they may. If you are trying to advise, keep in mind what people want to learn, not what you want to teach. "never try to teach a pig to sing. It wastes your time and it annoys the pig." - mark twain
Click to expand...





degree



how many people are there that read autopia post that do not reply do you think? Hundreds? Thousands?



Why do you assume to speak for them. It seems to me there are only a few people who regularly criticize what i post and have to say, very few, compared to those who read this forum. Since you do not like what i post, just ignore it. Why do you feel it is your lot in life to monitor and judge what others think of my posts by your prejudices and likes and dislikes?



What i post is what i post, my opinions and observations. And, i point out that i was invited to participate in this forum, i did not come on my own. I assume that the moderators knew who i was and my philosophies and if they do not like what i post they can ban me. No problem.



Regards

bud abraham
 
Shiny Lil Detlr said:
Forgive me, I forgot that it's impossible to have an productive conversation with you. :rolleyes:
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Charlie



Why not give me a call on my nickle 800 284 0123 Ext 4 and we can then have a real conversation.



More than happy to talk with you and exchange ideas. I have learned a great deal in my years in the business from experienced detailers like yourself.



Bud Abraham
 
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