Public relations "success" formula

    The most important 6 words:"I admit I made a mistake."
    The most important 5 words: "I am proud of you."
    The most important 4 words: "What is your opinion?"
    The most important 3 words: "If you please."
    The most important 2 words: "Thank you."
    The most important 1 word: "We."
    The least important word: "I."

Daughters of St. Paul, Boston

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Smarty pants

I've almost stopped reading industry bulletin boards. They used to be informative but lately most of the conversations are by people with something to sell. Others apparently try to impress folks with their intelligence. An example is the following post on a cleaner's bulletin board which is of no help to anyone in the cleaning business:

    String Definition: String is textile space and time, plus the smallest essence of all forms of matter and all forms of energy with ten dominant dimensions. There were five competing theories, all with different suggestions on how many dimensions there are. It turned out they were all saying the same thing.
    Edward Witten resolves those issues with the M Theory. The M theory showed an eleventh dimension leading outside our universe. This explains why gravity appears to be weak. Therefore there has to be 10 dimensions for there to be a relation between gravity and light. Since gravity and electromagnetic energies or equal in strength, there has to be an eleventh dimension for gravitons to escape.
    The actual comparison between gravity and electromagnetic energy is approximately 10 to the minus 39 power. Knowing how gravity and electromagnetic energy are related is one of the essential quests of the string theory. It was the one thing that Einstein died trying to understand.

I haven't figured out what he was talking about and don't think it had anything to do with the real world and daily trials and tribulations associated with the cleaning industry. But since he said that Albert Einstein didn't understand it, I don't feel so bad.

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Health care insurance

Everyone in business is waiting to find out how the new federal health care laws will affect them. An interesting e-mail came from a man I know in the health care insurance industry with whom I had discussed the ramifications of Obamacare. In our latest exchange I asked him how people in the insurance business felt about it and this was his reply:

    There are two ways to consider the health insurance question. One thing is good for consumers and bad for the industry. It is the removal of preconditions for coverage. Since the business makes money by taking in more than it pays out, the firms are profitable. But now having to cover the sickest with no preconditions may be very expensive, which could shoot profits. About 90 % of healthcare is spent on the sickest 5 %.
    On the other hand, since everyone will be forced to have insurance through the individual mandate, many more people will be paying money to insurers which will cause a big growth in revenue. The question is if it will offset the issue above.
    My personal guess is that insurers will make out very well. If the profits decrease, premiums will go up for everyone to make up for it. Our last two years have been consecutively the best in the company's history, and this year is tracking even better.
    The bulk of new rules don't hit until 2014 though, so there is still a year or two to go before that is known.

That's not the answer other businesses need, but it does say one thing for sure. Insurance companies will make out because they can and will raise their rates. For most businesses and the working public, the 2012 election will make a vast difference in their finances and especially in the direction our country will take in the future.

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IRS audit

The IRS has thousands of new agents and audits are said to be up 54%. A news report says many audits of small businesses aren't turning up much in the way of violations. That's little comfort if you're notified on the Friday before a holiday that they're going to audit you.

IRS will give you an idea of what the audit is about to avoid surprises and wasting time with issues in which they have no interest. A disorganized pile of paper will not make the IRS throw up its hands and walk away.

The report said that if you're notified of an audit, gather all pertinent documents and notify your CPA of the date and time. Treat IRS employees with courtesy and they'll be more likely to listen and understand your explanation of matters.

Even if auditors find no violations of the tax laws, the experience can be traumatic. It takes you out of the mainstream of creating customer satisfaction and is a very negative experience. It also can be very costly in accounting and legal time if yours is a large company.

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A note to Kevin

This note was sent to Kevin Stark recently and it really brought back memories to me:

Kevin,
Enclosed is my check for the best and up-to-date equipment. I very much appreciate my association with Bane-Clene and the success it has assisted me in since 1979. This note paper is from my first Mini-Clinic in Lawrence back in '79, a bit out of date. I have great memories with Bane-Clene. Thank you so very much.
Paul Jones, New Life Carpet Cleaning

I remember that meeting in Lawrence, Kansas and the note books we gave to those who attended. I met so many nice people in Lawrence and I have fond memories of Paul. Another name I often see mentioned in trade related articles is "Chavez." I don't know if it is the same person, but a man named Chavez from Kansas impressed me with his knowledge of the business. We had a nice conversation after that meeting.

Besides passing along things that I knew about the business, Mini-Clinics were also a learning experience for me. I got to meet real cleaners with no hidden agenda. (Well, maybe a few salesmen snuck in.) Many of them shared their feelings openly and honestly and for more than 20 years I felt I had my finger on the pulse of our industry.

Thanks Paul for the nice note, your latest equipment purchase and especially for stirring up some great memories of days gone by. We framed your note on the old Mini-Clinic pad and hung it in our break room for everyone to see.

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I believe in change, too!

This interesting e-mail about our equipment, with my answer, is from someone whom I hope becomes a customer in the future:

Dear Mr. Bill Bane,
I read your blog and you talk a lot about change. I heard about you ever since I got in this business 6 years ago but never bought anything from your company. I live down south and have had a (brand name) and never worried about it freezing. But the price of gas has got to me. I was not convinced I should check out your machine until I had mine serviced the other day. When I said I was thinking about your TM, you would have thought I was nuts from the way that guy blew up. He tore you up one side and down the other and said you're old fashioned and have not changed anything since back in the sixties. But if you lasted in business 50 years, there must be something to what you sell and I want to hear what you say to that.
J. B. Crawford

Mr. Crawford:

Today I looked at some web sites that offer used truck-mounts for sale and it's easy to see that folks are trying to get rid of equipment that uses gasoline and diesel fuel. That may explain why our friendly colleague in the supply business wasn't so friendly toward us.

It's true I don't believe in change just for the sake of change. But in business, change is inevitable and I speak to our classes at Bane-Clene Institute extensively about it. We've made 60 significant changes in our equipment since we built our first two truck-mounted units in 1969.

The outside may have looked the same for the past few years, but under the hood there have been many changes. If you will call 800 428 9512 and talk with one of our customer service reps he will explain all of the changes and answer any other questions you may have.

One of the reasons our system has been successful is that it uses electricity, is very dependable and lasts a long time with little maintenance. Nearly every unit we sold in the '70s is still operational and making money. No other company can make that claim.

Thanks for the e-mail and I look forward to meeting you some day.

Bill

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Thoughts on testimonials

The Federal Trade Commission (FTC) has "Truth in Advertising Guidelines." The BBB warns that there is a section on how to comply with the FTC Act. "Endorsements used in testimonials must be truthful, not misleading and must reflect the typical experience of consumers who use the service, not the experience of just a few satisfied customers. You must also disclose any connection you or your business has with the consumer who is endorsing your service."

Never use a customer's address or telephone number on a testimonial that's shown to a prospect. We send a report card to our service company customers with five questions, one of which is, "Would you recommend our service to others?" Most cards come back with notes saying that they already have recommended us. That's the best way, when they do it voluntarily. We do not use a service company customer's testimonial to gain new customers.

Nearly all of our new customers come to us from the recommendation of someone for whom we have worked. Another way testimonials work for our service company is being recommended by Angie's List or the Better Business Bureau. New customers often check with these two consumer organizations about our history. We've had a good record with the BBB since 1973 and "Angie's List" since she bought out Unified Neighbors in Carmel, Indiana.

As for all the hoopla over points and awards for customers, just remember that people are tiring of all the work they have to do to qualify for a "spiff" or to gain points for different products and services. Everything we do today seems to have a hoop we must jump through or a club we have to join in order to quality for special treatment.

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Putting the national debt in perspective

Thanks to Jim Bowman for this e-mail. The prospects give me a headache but this helps in understanding the cold, hard reality as to why the problem must be addressed, and soon.

Bill,
Everyone seems to be struggling to understand the national debt and lack of a federal budget. These figures are associated with our government mishandling the economy.

• U.S. Tax revenue : $2,170,000,000,000
• Federal budget : $3,820,000,000,000 *
• New debt : $ 1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cuts : $ 38,500,000,000 **

This may help us understand why the deficit is so destructive. Pretend it's a household budget by removing 8 zeros.

• Annual family income : $21,700
• Money the family spends : $38,200
• New debt on credit cards : $16,500
• Outstanding balance on credit cards : $142,710
• Budget cuts to try to fix the problem : $385

How long do you think that family would survive economically?

Jim

* They don't have a budget. They just keep raising the debt ceiling allowed by law.
** Their idea of a budget cut is not increasing spending.

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Still good advice

We published the following seven tips in the Cleaning Digest in 2002 when an economic downturn followed the 9/11 disaster and things looked pretty bleak. This election season is so negative that even the most optimistic people can be affected. Remember that no matter who wins on November 6, life and business goes on.

• Stop blaming the economy for business being down. Work a little harder!
• Customers are the best unpaid advocates you will ever have. Work harder for them.
• Build trust in every single job that you do and the customer will tell their friends.
• There is no better advertising than a customer referring you to their friends. And it's free.
• No one likes cold calls, but there is commercial business out there. Just ask for it!
• Spend 80% of your time on current customers - only 20% prospecting for new ones.
• Work on developing a thick skin. Be prepared to hear "NO!" Move on!
• Set daily, weekly, monthly and annual goals and then try to beat them.

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SOA update

The CRI recently released new products that have been added to the Carpet and Rug Institute's Seal of Approval testing and certification program for carpet cleaning products and equipment. There were nineteen new vacuum cleaners, seven cleaning solutions, one extractor and three new systems. The SOA total now stands at 914 products with a little rental machine listed as one of the best in the industry.

Meanwhile the number of professional cleaning firms signing up for the SOA program has stalled at about 1,000. That number was reached with much fanfare two years ago. But that's only 1,000 out of the more than 40,000 cleaning firms nationwide. Before long CRI will have more products certified than there are Certified Service Providers to use them. And I always thought cleaning was simple!

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Honoring a customer

The Hilbert's have been Bane-Clene customers since 1976. If there was a mold that could be made for the perfect service company, All American Carpet Cleaning, Inc., of Akron, Ohio would be the model. I met Ken Hilbert at an Ohio Carpet Cleaner's convention in Cleveland in 1974 and we've been friends ever since.

These people are so special. They are among a more successful group of Bane-Clene system owners who follow the formula for success. They've won numerous awards and there have been a myriad of accolades from their customers, many of which have reached my office. A classic example are the remarks on a recent customer report card from a lady in Ohio.

On August 8, 2012, Ann Sedlak of Copley, Ohio checked all the boxes affirmatively on the customer report card that was mailed to her. The questions were: Was out telephone representative courteous and helpful? Was our service operator courteous and efficient? Was our service operator neat and clean? Would you recommend our service to others?

Then she added the following comment:
"I am impressed! My carpet looks brand new. I was going to put a hardwood floor in one room, (he did not clean it). After seeing the rest of the carpet I'm going to have All American Carpet back to clean that room! Thank you!"

Thanks to the Hilbert family and all the rest of you who work so hard to establish and maintain a high and fine reputation in the carpet cleaning industry. If there were more like the Hilberts there might be more carpet and less hardwood.

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New computer virus

The FBI warns that a new virus attacks when you visit an infected website. Unlike traditional viruses, "Reveton" does not need the user to open a specific file or email attachment. When infected, the computer freezes. A message appears indicating it is from the FBI and that the computer has been identified as being used to commit cyber crimes and/or illegally downloading music or other programs. The message levies a “fine” against the user that must be paid in order for the freeze to be lifted.

“This is a new twist on the online scams we see every day,” said Bill Thomas, president/CEO of the Better Business Bureau serving Central Indiana. “Most online scams try to trick the user into either divulging personal information or paying money for a non existing product or service. In this respect, the Reveton virus is no different. The Reveton virus differentiates itself because it can infect a computer without the user taking any action aside from simply surfing the Internet,” Thomas said. “Nothing needs to be opened, clicked on or downloaded, which makes all of us susceptible to this virus and scam.”

The BBB suggests the following if you are a victim of the Reveton virus: Do not pay any money or provide any personal information. Contact a reputable computer professional to remove Reveton and any related software from your computer. Be aware that even if you are able to unfreeze your computer on your own, the malware may still operate in the background. Certain types of malware have been known to capture personal information such as user names, passwords and credit card numbers through embedded keystroke logging programs.

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