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INSTEAD OF JUST SELLING WORK Marketing is everything that a company does as seen through the eyes of a customer or a prospective customer. In a marketplace thats growing as it has in the past several years, contractors sometimes move away from the concept of marketing, which has more of a long-term focus than typical sales calls on customers to secure work. But marketing is essential to get customers to buy on something other than price. Marketing helps warm up customers to buy on value. And thats why you need to focus on it. MARKETING TOOLSThere are lots of tools to help market your organization for example, direct mail. Although the term, direct mail, frequently has a negative impression in peoples minds, it refers to a lot more than junk mail. Direct mail is anything sent using the U.S. Postal Service, Federal Express, or other courier. And today it also refers to e-mail. Direct mail is a way to let customers know that youre thinking about them even when theres not a project on the table. Direct mail is one of the simplest and most cost-effective ways of maintaining a long-term relationship with customers. Some organizations use public-relations strategies to get a third-party endorsement about the caliber of your people, the products that you use, or your organization. Public relations is basically getting somebody to say something nice about you. When people outside your company say youre a high-quality organization, its a lot more believable to customers than if you tell them yourself. Promotions are another marketing tool. A promotion is anything with your logo on it whether its a coffee cup, t-shirt, hat, pen knife, calculator, or checkbook cover. In many cases, people dont believe they need to promote their services because they have a big, growing business with all the customers they can handle. But promotions are for existing customers as well as prospective customers. At least half of your marketing expense and effort should be addressed toward existing customers. Getting a consistent message out in the marketplace, including logos, is an easy way to let your customers know that youre still there, that youre a viable business, and that youre a long-term partner for them that they can rely on. Another part of your marketing process could be customer outings, such as playing golf or taking them to baseball games. STRIKING A BALANCEEvery great salesperson has to be a little oriented toward marketing. There has to be a balance between sales and marketing. Sales is focused on the present; marketing is focused on the future. Sales is about filling holes in the backlog and keeping your people busy. Marketing is about where work opportunities are going to come from several years down the road. Marketing is about your job signs. Its how your telephone gets answered and the impression that people get. Its what they think of when they see one of your trucks rolling down the highway. SERVICE BRINGS THEM BACKBut marketing and sales have something in common. Customer service is critical to both. Think about your business and think about the people who are fundamental to the process of customer service. Customer service throughout that group of people needs to be focused on the same basic things that your marketing and sales efforts are being focused on. When you ask a customer why they would use a contractor the second time, they will usually tell you its directly tied to their relationship with the operations team. Its their experience on the job. So your operational team has a huge impact on your ability to get and keep key customers. But so does accounting. Typically, the last touch your organization has with a customer is the invoice. You should make sure the accounting and administrative staff of your organization is as focused on customer service as the operational team. Remember, there are lots of different kinds of customers out there. Some can say yes, but a whole lot more can say no. They can create doubt in the mind of the person who actually signs the check. Selling reinforces marketing efforts and secures work opportunities. And customer service ensures they keep coming back for years and years to come. FMI Management Letter January 2001
The Loss of an Industry Leader On Monday, February 12, 2001 we experienced the loss of one of our roofing industry leaders Robert Michael Crane. Known as Mike to his dear family and friends, he was an active member of the SMRCA Board of Directors and RIPF Trustees. He is survived by his wife Patricia, sons John and Andy and predeceased by daughter Christine. Mike was the owner of Newton & Crane Roofing located in Pontiac, MI for over 25 years. Mike was a long time member of the Church of the Holy Spirit and active in the Knights of Columbus and Mens Club at the Church. On a personal note, I am thankful that I had the opportunity to know Mike. He touched so many peoples lives with his caring and thoughtful ways. Mike always welcomed me with a big hug and a God Bless. I realize that he is now at peace and sleeping with the angels. On behalf of Mikes family, I would like to thank you for all your support. The out-pouring of mementos and cards were just overwhelming. Mike will be greatly missed. SMRCA to Exhibit at the Michigan Plant Engineering & Maintenance Show The SMRCA staff, along with volunteers from our SMRCA Member Contractors will be exhibiting for the first time at the Michigan Plant Engineering and Maintenance Show. The show will be held at the Novi Expo Center. The show dates are Wednesday, March 21st and Thursday, March 22nd. Show times for both days are 10:00a.m. 4:00p.m. The SMRCAs booth number is #447. Hope to see you there! Local
#149 Roofing Industry Promotion Fund In an effort to promote excellence in the roofing industry, Roofers Union Local #149 and the R.I.P.F. are working together to offer college scholarship grants to worthy individuals. The program offers six scholarship grants in the amount of $600 each, to those eligible individuals who are attending or planning to enroll at an accepted College or University. A. Four (4) scholarships offered to those persons who are dependents of Active Local #149 Members, and B. Two (2) scholarships offered to those persons who are dependents of RIPF Member Contractor office employees. Dependents of company owners or principals are not eligible. Scholarship Grants are possible through contributions by Roofers Union Local #149, the Roofing Industry Promotion Fund, and the participating roofing contractor employer of the recipients parent or guardian. All essays MUST BE RECEIVED at the RIPF office no later than Friday, March 30, 2001. The 2001 SMRCA Annual Meeting & Reception The SMRCA Annual Meeting and Reception is scheduled for Thursday, April 26, 2001 at the Atheneum Hotel in Detroit, MI. The RIPF/SMRCA Contractors meeting is scheduled for 6:00 p.m. in the Euripides Conference Room. This meeting is open exclusively to RIPF/SMRCA Member Contractors. It is very important to have a representative from your company present. The election of an RIPF Trustee and appointment of an SMRCA Board member will take place at this meeting. The cocktail reception will begin at 6:00 p.m. in the Aphrodite Conference Room, followed by dinner at 7:30 p.m. Then we are on our way to the Greektown Casino, to win some big bucks! An information package regarding the SMRCA Annual Meeting should be arriving in the mail in the very near future. 2001 SMRCA Annual Golf Outing Another SMRCA function is right around the corner. The SMRCA Annual Golf Outing is scheduled for Tuesday, May 22nd at Twin Lakes Golf Club and Black Heath Golf Club. This is a new location for us. We will be following the same format as we did last year, breakfast, followed by a shotgun start at 11:00 a.m. Prize distribution, cocktails and hors doeuvrs followed by dinner at Twin Lakes Golf Club. Please mark your calendars! Watch your mail for more information on this event. Great Lakes Regional Roofing Trade Show 2002 The Great Lakes Regional Roofing (GLRR) Trade Show has been scheduled for Thursday, March 14, 2002. The GLRR Trade Show will be held at Burton Manor in Livonia, MI. The GLRR Trade Show hours will be 11:00 a.m. 5:00 p.m. The GLRR Trade Show Committee members are Sue Baumberger Johns Manville, Mike Mass Koppers Industries, Inc., Jason Emery LaDuke Roofing & S/M, Steve Yontz Lumbermens, Inc., Larry Rowe National Ladder & Scaffold Co., Mike Grewette Schreiber Corporation, Karen Colver SMRCA, and Heather Hentges SMRCA.
Newton & Crane, Inc. For Sale Newton & Crane, Inc. is a well established Pontiac roofing company that has been at its present location for over 83 years. Due to the recent death of its present owner, R. Michael Crane, the company is now for sale. The company pledges to continue its superior quality and efficient service during this transition period with its current backlog of work and professional employees. Serious purchase inquiries may be addressed to: J. Michael Woodgate Berkshire Hathaway Inc. Completes Acquisition of Johns Manville Corporation Omaha, Nebraska, February 27, 2001 Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) announced today the completion of the acquisition of Johns Manville Corporation by the merger of a Berkshire Hathaway wholly owned subsidiary with and into Johns Manville. As a result of the merger, Johns Manville is now a wholly owned subsidiary of Berkshire Hathaway. The merger follows a cash tender offer for all outstanding shares of Johns Manville at $13.00 per share, which was completed on February 23, 2001. As a result of the merger, each outstanding share of Johns Manville not owned by Berkshire Hathaway has been automatically converted into the right to receive $13 per share in cash. Johns Manville shareholders who did not tender their shares in the tender offer will receive a Notice of Merger and a Letter of Transmittal that will instruct them as to how to receive the $13 per share or, in the alternative, exercise appraisal rights under Delaware law. Johns Manville is a leading manufacturer and marketer of premium-quality building products. The 142-year-old Denver-based company had sales of $2.2 billion in 1999. Johns Manville employs approximately 9,700 people and operates 55 manufacturing facilities in North America, Europe and China. NTH Consultants, LTD. Philadelphia, Pennsylvania NTH Consultants, Ltd. (NTH) is pleased to announce the opening of their Philadelphia, Pennsylvania office, located at Two Penn Center across from City Hall. NTH has been providing professional engineering services in the Delaware Valley since 1985 from their Exton, Pennsylvania office. Under the direction of Philip E. Gauffreau, P.E., these services currently include geotechnical engineering; construction quality assurance; environmental services; roofing engineering; and facilities rehabilitation (building envelope, pavements, etc). NTH Philadelphia will enhance their ability to service their Philadelphia-based clients and local projects. Clients and teaming partners include A/E firms, school districts, construction manager/general contractors, local, state and federal government agencies, and retail/commercial developers. For more information contact their East Coast Business Manager, Dave McNerney, at 215-854-6359 or 610-524-6771, or email dmcnerney@nthconsultants.com. MIOSHA Construction Safety Only about four percent of Michigans workforce is employed in construction. Construction fatalities, however, accounted for more than 40 percent of all MIOSHA program-related fatal workplace accidents over the last three years. 2000 Fatal Accidents By Major Cause* Electrocution 7 The single most important thing construction employers can do to protect their employees is to have a comprehensive and implemented accident prevention program. MIOSHA Accident Prevention Program
The above components can be found in construction, Part 1, General Rules Standards. Article supplied by MIOSHA News, Winter 2001, Construction Safety Division 517-322-1856
Mr. Robert Drogosch, the JAC full-time instructor, has been keeping himself quite busy. Along with all his other responsibilities, Mr. Drogosch has also been taking Spanish lessons to better his communication skills with some of his students. Mr. Drogoschs hard work and dedication is a proven factor in the success of the Joint Apprenticeship School. Donations for the JAC Training Center are still being accepted. Donations received thus far total $22,850. The JAC Committee would like to thank all contributors that have donated money, materials or who have volunteered their valuable time to this worthwhile project. CAM ExpoThank you for supporting the SMRCA at the CAM Expo this year. Your help at the SMRCA booth was greatly appreciated. We couldnt have done it without you! Thanks to: Sue Baumberger
Johns Manville Happy Birthday Belated birthday wishes to: Quinn Thomas Brick was born on September 12, 2000. Rick and Lori Aranguren celebrated New Years
Day at the Brock Maclean Stephenson was born on January 20,
2001. Jason and Corey Emery are expecting their first
baby. We would like to extend our deepest sympathies to the family and friends of Virginia Peterson who passed away in February. Mrs. Peterson was the mother of Local 149 Business Agent Robert Peterson, and roofers Donald and Mark Peterson. Now AvailableBelow is a list of items that are currently available through the SMRCA office. Time Books no cost to RIPF/SMRCA Member ContractorsHardhats (red or white) - $4.50 each Safety Glasses (new item) - $3.25 each Please feel free to contact the SMRCA office if you are in need of any of these items. SMRCA March 21-22 April 20-24 April 26 May 22 June 6-8 June 13 August 2-4 October 11-12
NRAC's November "10@10" In Limbo Despite their best efforts, the House and Senate were unable to find agreement on the appropriations bills with the Clinton Administration, requiring a lame-duck session. Congress is expected to return the week of November 13th for what should hopefully be a short session. Without the politics of the elections in the way, many pundits think solutions will become easier. Once their work is completed Congress will adjourn for the year. Unfortunately and unexpectedly, this 10@10 is also being penned before the final outcome of the Presidential race. Since this determination will necessarily impact the legislative issues, I am providing a summary of what is occurring in Congress. Final Tax Relief Bill Prior to recessing for the election, the House passed a significant tax package. The bill included several bipartisan measures such as the Community Renewal bill to help distressed communities and the Small Business Administration re-authorization, as well as a $1 increase in the minimum wage. The vehicle for the tax package was a small business loan bill and it included several pro-small business provisions. Some of the important small business tax reforms included in the bill are an increase in the business meal deduction and a repeal of the provision prohibiting the installment method of taxation. The Senate is expected to pass the bill next week and send it to the Presidents desk despite a looming veto threat. Pension Reform A bill to create additional pension savings and reform, H.R. 1102, the Pension Reform Act was also folded into the tax bill. Some initiatives included in the final measure were: Increased portability of retirement plan assets making it easier for employees to roll over assets when they change jobs, A simplified pension system to encourage small businesses to offer pension plans and, An increase in the limit on 401(k) plans to $15,000 and IRA expansion from $2,000 to $5,000. OSHAs Ergonomics Regulation The ergonomics issue will prove to be one of the very last issues negotiated by the 106th Congress. In fact some surmise that ergonomics actually caused the lame duck session. Currently the Labor, HHS Appropriations bill contains a rider prohibiting the introduction and implementation of the ergonomics rule until October 1 of next year. The Administration would like to introduce the rule in the Federal Register thereby putting the onus on the business community to stop its final implementation. Some middle ground solutions have been discussed but no concrete solutions have been forthcoming. Unfortunately, the National Coalition on Ergonomics expects the Administration to introduce the final rule very soon. Immigration Proposals Next to ergonomics, immigration looms as the second largest stumbling block to recess. Currently the Democrats and Republicans are sparring over immigration language on the FY01 Commerce, Justice and State Appropriations Bill. The Democrats would like to include the Latino American Fairness Act (LIFA), which would provide blanket amnesty for illegal aliens who have been in the U.S. since 1986. However, Republicans claim that this would unfairly benefit those immigrants that break the rules and instead seek to include provisions that help these immigrants work through the system to attain residency. School Construction Funding One of the more contentious issues throughout the 106th has been education. Most of the debate lately has centered on the issue of funding school construction. The federal government has traditionally stayed away from bricks and mortar funding, preferring to leave this decision to localities since federal spending represents only 8% of total education spending. In the FY01 Labor, HHS Appropriations bill however, billions were included to help schools fund renovations and repair. Bonds are to be issued as well to help communities build new schools. This will obviously create an infusion of work for the roofing industry. Asbestos Legislation During the development of the tax bill, there were dozens of provisions considered for inclusion. One of these was H.R. 4543, a bill introduced by Representative Hyde (R-IL) to amend the Internal Revenue Code of 1986 to provide relief for payment of asbestos-related claims retroactive to the 1940s. As supporters of the Fairness in Asbestos Compensation Act, NRCA did not believe it prudent to pass a short-term measure which would only provide additional resources to fund trial lawyers while further hampering efforts at true reform. The House-passed version of the tax bill did not include H.R. 4543.
Roth IRA's For Teens If you could invest tax-free money now, let it compound for 40 or 50 years, and then take the proceeds out tax-free, you dont need to be knocked over the head to realize thats a great deal. However, its one only your child can take advantage of if he or she has a Roth IRA and makes less than $4,400 annually from a part-time or summer job. Thats because teen-agers who earn less than $4,400 this year will not be required to pay income tax unless they have a significant amount of unearned income from dividends and interest. If they invest part of their earnings or if you, in a tax-free gift to them, invest the equivalent of part of their earnings in a Roth, it will grow tax-free. Roths Good For All Even if your child makes more than $4,400, chances are his or her income tax bracket will still be at the lowest level in his or her working life. Thats why contributing to a Roth at an early age is a great deal for anyone, financial experts say, since they will get the most value from the after-tax earnings they invest. They are not losing anything in the way of deductions and their money is locked up for a long time. For instance, $2,000 invested today and left to compound for 50 years grows to $235,000 tax-free, assuming a historic average annual return of 10 percent. If $2,000 was invested every year for three years and left untouched for 50 years, your teenaged son-turned-retiree gets to draw on $642,000 tax-free. Of course, 50 years is a long way off and retirement is inconceivable to most teen-agers, who are more likely to view age 25 as the great divide between young and old. When your children hit their late 20s or 30s, they may be very happy for those early Roth investments. Say your child wants to buy a first home. He or she may withdraw any contributions made to the Roth free of tax and early withdrawal penalties. Earnings in the account up to a maximum of $10,000 are fair game, too, presuming the Roth account has been open for five years and presuming all contributions have been withdrawn already. College or graduate school expenses, whether your childs or even your grandchilds, are another legitimate justification for early Roth withdrawals. You and your child should know, however, that money taken out for qualified higher educational costs, while free of early withdrawal penalties, will be subject to income tax. Opening a Roth IRA Account For Your Child Since minors are not allowed to set up their own investment accounts, parents must act as custodian. The account will fall under the childs control when he or she reaches the age of majority. In order to open a Roth IRA on your childs behalf, there are a few simple ground rules. First and foremost, a child needs to have earned income and you should have proof of that income. That wont be a problem if your teenager works for a company that deducts FICA taxes from paychecks, but if he or she works for cash, it is recommended that you file an income tax return on his or her behalf, even if the earned income falls below the $4,400 cap. Second, there is nothing barring you from making contributions on your childs behalf, if you wish your child to keep his earnings. Since the annual limit on contributions to a Roth is $2,000 per year, any amount you put in your childs account will be treated as a tax-free gift, since the limit on tax-free gifts is $10,000. Lastly, contributions to a childs Roth may not exceed the amount of income earned, although they may be made in advance of when that income is paid. So if you want to invest $2,000 at the beginning of the year and your child will only work during the summer, thats fine, so long as he or she earns at least $2,000. If you mistakenly contribute more to the account than your son or daughter ends up earning for the year, you can take out the excess contribution without penalty before you file your tax return for the year. However, any earnings on that excess contribution must be taken out as well and you will be charged a 10 percent withdrawal penalty on that money as well as income tax. The law is less clear on what you need to do if the excess contribution lost value, so you should check with your accountant. Not Every Shop Offers The Option Not every brokerage house or fund company will set up a Roth for a minor. Janus, for instance, requires a minimum initial investment of $500 and subsequent purchases of no less than $50. If you go to Schwab, the initial minimum is also $500, but there is no minimum for additional purchases. At T. Rowe Price, parents may open a Roth for their teen-agers with a $1,000 minimum or $50 automatic monthly contribution. And at Vanguard, new accounts require a $1,000 minimum investment, with no less than $50 subsequent contributions. While fund choice and investment minimums may differ depending on where you go, whichever source you choose, be sure to put the money into growth-oriented investments. Thats because your teen-agers have a long way to go before they reap. Article contributed by Richard J. Temko
Upcoming Seminars RIEI Seminars The RIEI provides educational seminars that include cities from coast to coast. RIEI addresses a wide variety of seminar topics which are of interest to roofing contractors, consultants, specifiers, plant engineers, and anyone else with a professional interest in roofing design, construction and maintenance. Single Ply Roofing Systems March 27 Washington, DC This class is designed to help you choose and install a performing single ply system. You will learn about the chemistry, manufacturing, application, maintenance and repair procedures; as well as look at specifications and participate in a discussion of warranties. This course is not for those new to roofing, as basic roofing concepts are not covered. Modified Bitumen Roofing Systems March 28 Washington, DC Get an overview of available products and systems in the marketplace. Learn how to install and use these products, not only in roofing systems, but as walkways, cap sheets, flashings and repair materials for all types of bituminous roofing systems. This course will be useful to anyone who has to choose roofing systems or repair and maintain bituminous roofing systems. This course is not for those new to roofing, as basic roofing concepts will not be covered. Roof Inspection, Diagnosis & Repair March 29-30 Washington, DC Learn the techniques used for conducting visual roof inspections and non-destructive moisture surveys. Students will leave with an understanding of sample taking, materials testing and proper repair techniques. Roofing Technology April 17-20 Minneapolis, MN This is a necessary course for anyone who has roofing responsibility. It provides a sound, theoretical and practical foundation and understanding of roofing systems. It forms the basis to understand the advanced specialized courses offered by RIEI. Sprayed-in-Place Polyurethane FoamApril 23 Houston, TX Learn the proper specifications, application and maintenance of SPF systems in re-roofing, retrofitting and new applications. This course covers SPFD, NRCA and ASTM Guide Specifications as well as full maintenance and repair of SPF systems. Rooftop Quality Assurance April 26-27 Houston, TX Verification of specification compliance is important to building owners and project specifiers. Learn about rooftop quality assurance and how it works with the roofing contractors quality control. Guidelines are provided for BUR, EPDM, SBS, APP, PVC and Spray Foam Roofing Systems. Introduction To Computers Microsoft Word March 23 March 26, 27 & 28 Management for Profitability March 27 & 28 Project Management March 29 Scheduling & Planning April 10 Power/Industrial/Truck Operator Training April 19 MIOSHA Record Keeping April 25 Contact CAMTEC to Register: How To Develop Highly Effective Marketing Plans & Competitive Strategies April 2 & 3 East Lansing, MI This highly intense two day workshop is so critical to your organizations ongoing financial health and future growth that it could very well be the most important training session you will ever attend. You will learn secrets about the marketing and competitive strategies of organizations in all types of industries. |