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After reading each and every post over this weekend (3-times), talking personally with Cody at length after my seminar, talking on the phone with 4-other State Owners many times and various e-mails on this subject, I feel one very positive way to generate money for Corporate with the least amount of pain on our operators is shipping. After studying 2007 financials of M-CO Inc. I could not find a line item for shipping under expenses, so I called Corporate and asked for an annual cost of shipping? Nobody seemed to know the exact number, but $100,000.00 was thrown out.
If I use $8,000.00 a month, that would be a good start to funding new “stuff” at corporate. As Laura and others have stated, we all pay for shipping (and expect to) when ordering “things” we need. Just the other day I ordered a special filter for my pressure washer, part cost $5.00 S&H $7.50 Total $12.50.When the part arrived it was in a USPS 3-day mailer for a $3.00 shipping cost!!!!!! They made more on handling then the acutal part. The reason I give this example is Corporate should have a flat handling charge on every order (maybe $5.00 or more) that takes care of warehouse expenses, and then add the shipping cost, now you have a true S&H.
The second thing I think would be an easy sell to my people, An advertising cost fixed per month. Notice I did not use the word nationtal, If Corporate tried National Advertising in Florida it would be a WASTE !!!!!!!!
The coverage of operators in Florida is thin at best. With over 300 operators, a $30.00 monthly fee would generate over $9,000.00 a month. Would that be a good start for generating a pay click program or having some good quality tv, radio ads made which our people can use in their markets? I will end with, Anything but INCREASING my operators royalty fees by 50%. Thank You for listening.
RonWhy do we have contracts???
These contracts are useless for us!!!!!!!!!!!
Corporate can do what ever they feel best on new sales, but leave the present owners “status quo” Set up a long term 5% increase a year for 5-years. With a bunch of new sales and more fees coming on line that is a “bunch of money”. Show me how many companies are increasing their products by more than 5% in this economy.
I use to stand at booths all weekend and pass out papers that said:
A COMPANY YOU CAN TRUST (no more).
RonI just received a call from corporate and dug my “heels” in!!!!!!! Like Brian said, The whole issue is Corporate needs more money to survive and help the existing operators. At this time “no way” can I ask my people for more money. I went through 14 newsletters last night and the total number of sales or training was 23. Now take out the announcement of new S. owners and people like Mark Hale who bought an existing territory and trained (few dollars to Corporate) the number probably drops to 12. Cody agreeded. What Im trying to get at is, he has a very poor bunch of State Owners trying to make sales. I don’t need to make my people sell some of their existing areas! I need to sell more new areas. I asked him if 4-sales a month or 48 a year would put a smile on his face? You all know the answer. We all need to find new ways with Corporate direction to make sales. The new owners go home, buy supplies pay their LOW fixed royalty and everyone is happy. My number of sales for 08 was ZERO. I’m ashamed of that number and I’m crying for help to make sales. Everyone wants to make reference to Chem-Dry, how many areas do they have? With a fixed royalty of $80.00 we should be making a “ton” of sales. Don’t go after my operators for more money who are the backbone of this company!!!!!!!! Every State Owner make 2-sales a year or if you don’t, You owe Corporate $5,000.00
RonI’m so upset with last nights announcement of the new Corporate “stimulis pkg” for them, none for us, but more so, none for our operators. Cody always down plays the media, now I really do think Rexburg has their “head in the sand”. I do not like to prejudge the plan or how much thought went into it, but I can judge the timing, I have personally lost over 6 figures in the last year and I’m in close contact with ALL of my people and they are in trouble. If this should have been put in place 6,7,8 years ago and was not, than this shows bad calls on timing by corporate management and now we are asked to go to the hands that feed us and ask for MORE!!!!!!!!! I’m sorry that is wrong. I have 50 areas, so Corporate gains $4,000.00 per month after full plan is in place , Than I lose half of my people over this economy and Corporate still gets $2,000.00 a month and I lose $2,000.00 a month!!!!!!Great thought out plan. How do I face my people on seminar thursday, knowing this , and telling them how we are all family and so glad to have them in the business? I wish I could figure out a way to cancel Corporate coming to my seminar.
Hey Tim,
After reading your posts, It sounds like you are ready for a vacation in sunny Florida!!!!!! I have a daughter that lives about 25 miles north of Detroit, She just gave birth to a baby girl yesterday, and wants us to fly up as soon as we can get away, I told her you have to get above 40 degrees before you will see me there!!!!!!! Wow what a winter!!!!!!
RonHey Tim,
Got a seminar in Florida on Feb 26, write it off as an expense and get warm!!!!!!!!!!!!! I came from NH and had many a winter like what you are having but I did not have to clean carpets in that weather, I can’t imagine why anyone would even schedule a job in that weather.
RonHello Gordon,
I’m having a one day seminar, Feb 26, 2009. I had 2-day last year and decided I’m going to alternate from year to year. I have scheduled Mitch Brian from WSI to fly in for seminar. After hearing him at SO meeting I felt his information on internet advertising will be very benificial for my people. He has the morning, after lunch we will have new tile & grout machine on display, also talk about where we are going with Tandus. (I hope to be able to demo new machine, but I’m finding it “not so easy” to find a place with dirty tile. When I call to book a meeting room, I ask them, Do you have dirty tile at your place? You can guess what I get for answers!!!!!!!! Just my 2-cents, hope it helps you.
Ron
PS “Dirtbag” If you read this post , I enjoyed our phone conversation the other day and hope you can wrap up your test over the next two weeks.Cody
Thank you for this post and a very informative 2-day S.O. meeting. I’m now glad I changed my mind and attended. I think all of us left with many questions and will have more down the road. I have three to begin with, What is our process called? Do we all need to have a standardnized name for this? Is it true you need AT LEAST 10 million insurance coverage to work for Tandus?Thanks
Ron
PS Thanks for the SNOW!!!!!!!!!!!Ammon,
Check out Vist Print, I felt the price was excellent for the quality of the paper stock and printing.
RonI forgot to add, Rob Ashcraft just did a show in Atlanta (same company I used in Tampa) Maybe he can tell us how his show went and what the “mood” of the people was like!!!!!!
RonGordon,
Not yet, I’m still trying to get my people to a second van!!!!!! Maybe I could support some training in that area. Another topic for discussion at S.O. meeting in SLC?
RonHi Ammon,
I just spent over $3,000.00 for a Franchise show in Tampa and I’m sure in better times I had 3-4 sales. Lost 2 within a week due to economy and just the other day I lost the other 2, both said their 401K is now 201K.(both say they will watch their finances and call me at a later date). To much to discuss here, but a while back on this board I asked State Owners for 3 subjects to be discussed at S.O. meeting after we are done with Tandus and was looking for support, and this one was the most important for me. Does anyone else want this as a subject for discussion at S.O. meeting?
Ron
