Ohio PHC Contractor, 2012 #4 by Blue Water Publishers, LLC

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Built to be the Bestâ&#x201E;˘ www.bradfordwhite.com To Find A Wholesaler Call

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The Ohio PHC Contractor is the official publication of the Plumbing-Heating-Cooling Contractors of Ohio 20040 Carolyn Avenue Rocky River, OH 44116 800-686-PHCC Fax: 216-393-0095 www.phccohio.org / www.facebook.com/phccohio

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Volume 2012 Issue 4

Advertisers Index Avizent 22 Boyd Lofgren & Company

Bradford White

Champion Pumps

FastEst, Inc.

Federated Insurance

Grundfos

Hodes Company

Departments:

Liberty Pumps

A Message From the President 6

PHCC National Education Foundation

Legally Speaking: Attend to Year-End Legal Matters 8

Quality Service Contractors

R. L. Deppmann

Robertson Heating Supply Rockford Separators

2 10, 11

Slant Fin Taco

25 6, 7

T&S Brass

Turbonics

Welker McKee

Ohio PHC Contractor is a news magazine produced by the Ohio Association of PlumbingHeating-Cooling Contractors. Articles published in this magazine are the views and opinions of the writers and do not necessarily reflect the views or opinions of the Ohio Association of PlumbingHeating-Cooling Contractors. Publication in Ohio PHC Contractor should not be construed as an endorsement by the Association. Ohio PHC Contractor is the official magazine of the PHCC of Ohio and is published quarterly. News items from Ohio PHCC members are accepted. For information on advertising, contact: Jim Aitkins, Blue Water Publishers phone: 360.805.6474 • fax: 360.805.6475 jima@bluewaterpublishers.com 4

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Keeping Score: Family Business 20 PHCC Ohio Local Chapter News 23 PHCC Membership 50% Discount Offer 28 PHCC Membership Application 29 PHCC of Ohio 2012 - 2013 Officers & Board 30

Features: Frank Gates 2013 Group Rating Enrollment Reminder 11 2013 PHCC/ACCA Convention

Information and Sponsors 13 Schedule at a Glance 14 Seminar Sessions 14 Expo Exhibitors 16 Convention Registration 17 - 19

Time Management is a Hoax 24 Stop Playing the Game By the Prospects Rules! 27

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Departments

From the President Greg Eisenhart

y how fast the year has gone. Everyone said it would, but at the beginning it seemed far away. It has been a great year for myself, meeting new people and getting to know friends better. This organization has a great group of people in it – true professionals that care about their jobs and even more about their profession. They give countless hours of their time to promote the different causes and areas of concern of our profession. These include writing letters to political leaders to making trips to Columbus and Washington DC to promote our way of life. We sometimes don’t realize all the effort that goes into getting policies made or even introduced to the political parties. Many hours are spent just getting the right people to see its importance and relevance to our everyday lives. There is always room for more involvement in your local, state and national chapters for good concerned people. If there is anything I have learned this year, it is that it takes good dedicated individuals acting as a team to accomplish great things. If there is one thing I can persuade our members to do, it would be to get involved. Your help and time is needed at all levels of our group to support and make us strong. You don’t have to start at the top or middle, just get involved. Maybe on a committee, or as an advisor, or even just offer to help. This will make our PHCC stronger and better with new innovative ideas and energetic members. I would like to thank the Cincinnati chapter for having my wife and me down for their installation dinner. What a fun night with a great group of fellow plumbers. We are very blessed to have a great staff with Mary, Debbie and Rocco. They make the whole process run smooth while making us look good. I deeply appreciate all their help and guidance throughout the year. I would like to thank all the members for their support and trust in me in this position. Thanks to all of you and remember, your involvement makes us stronger.

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Take the fight for efficiency to your next job. Nobody knows American hydronic systems like an American manufacturer. Want the best? Combine our Bumble Bee® circulator, Zone Sentry® zone valves and a Taco control or two and you’ll have the most efficient system on the market!

A smarter pump: Our new ECM infinitely variable speed Bumble Bee leapfrogs other so-called “smart” pumps: it maintains the designed-for temperature differential between the supply and return (Delta-T) by reacting to how many zones are open and how cold it is outside. Then it pumps ONLY the BTU’s needed to match the actual heat loss. Your customers should see dramatic fuel savings and increased comfort.

A superior zone valve: The Zone Sentry’s patented circuitry uses up to 93% less energy than other commonly installed zone valves. Its high-flow ball valve design means the pump doesn’t have to work as hard. And with plug-in electrical connectors for easy installation, neither do you.

Job-friendly zone controls: Choose from the largest family of feature-rich switching relays, zone valve controls, and outdoor reset controls to tie the whole system together.

A bright idea: Know what’s going on at all times. See the watts used and flow rate on the Bumble Bee, what zones are calling on the controls or when the Zone Sentry is in operation. We’ve made diagnostics almost too easy. Join the American Zoning Revolution! Don’t compromise. Choose Taco and take the fight for system efficiency to your next job. Visit us online and see how many more ways we have to help you turn a good job into a great job.

Do your best work.

www.taco-hvac.com Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Departments

Legally Speaking

Bob Dunlevey Dunlevey, Mahan & Furry

ATTEND TO YEAR-END LEGAL MATTERS - Your Checklist -

2012

is coming to an end and for most of you that means the end of your fiscal year as well. Don’t let the holiday season frenzies cause you to neglect important year-end business affairs. Here is a handy checklist of some things you need to consider. • Schedule your annual corporate meetings for shareholders and directors; give notice in accordance with your bylaws/code of regulations; set the agenda for the meeting • Review your corporate minute book to make sure it is up-to-date; are last year’s minutes in there and are they signed? Did the minutes call for certain actions to be taken during the year and have these items been accomplished? Do the minutes ratify corporate actions, such as contributions to benefit plans, borrowing, auto leasing and monetary distributions? • Has there been a change in the officers, directors or shareholders? Do the corporate records reflect those changes? Do others need to be elected? • Are there shares of stock needing to be transferred or canceled? Is your share ledger in the back of the minute book up-to-date? • Is the statutory agent designated to receive important papers current and on file with the Secretary of State? – check the State’s website • Is your corporation in good standing with the State? – check the State’s website • Is the corporation doing business in any other state? Is it appropriately registered and meeting the requirements to do business in those states? 8

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

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Is the annual financial report, including a balance sheet, statement of profit and loss and surplus, and an opinion of the financial position of the corporation being prepared? Do the corporate records verify payments of salaries versus bonuses and dividends? – the IRS can contend that payments to corporate officers or employees or shareholders are not deductible dividends and that payments to its officers who are not shareholders are not deductible – better assure the proper classification of such payments by identifying the payments as deductible compensation and consider identifying the justification If no, or nominal, dividends are to be paid, and your corporation has a large amount of accumulated earnings, do the minutes include a statement of the reasons why the earnings are being retained? Have you changed financial institutions during the year and not noted it within the corporate records? Are those who are authorized to sign checks still the appropriate names and are the appropriate corporate resolutions contained within the minute book? Have there been loans to officers or shareholders needing to be documented by minutes and promissory notes? Do you have a buy/sell agreement which regulates and restricts the transfer of shares so you don’t end up with an unwanted “business partner?” Have you updated the valuation information which sets the price for which shares are repurchased? Has the buy/sell agreement been amended to include new shareholders?

We Serve Main Street, Not Wall Street As a mutual company, our number one concern is policyholders, not stockholders. Discover the value of having a financially sound insurance company with your best interests in mind. Visit www.federatedinsurance.com to find a representative near you.

It’s Our Business to Protect Yours

Federated Mutual Insurance Company • Federated Service Insurance Company* • Federated Life Insurance Company Home Office: 121 East Park Square • Owatonna, Minnesota 55060 • Phone: (507) 455-5200 • www.federatedinsurance.com *Federated Service Company is not licensed in the states of NH, NJ, RI, and VT.

What do the Beach Boys, Mickey Mouse, and T&S low-lead faucets have in common?

They all got their start in California, and they all swept the nation. Although California led the way with the AB1953 legislation mandating low-lead faucets, it’s only a matter of time until they are required in all states. And T&S is ready — all of our faucets are low-lead compliant and are available across the country. And, as always, T&S faucets are as rugged and reliable as they come, and meet the requirements of the Buy America Act. Contact your sales rep for more information.

contributing to LEED certification

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Mickey Mouse® and the Beach Boys® are trademarks of Disney Enterprises, Inc. and Brothers Records, Inc., respectively, and T&S Brass has no affiliation with either such entity.

TSB-437 Low Lead PHCC Ad PUBS.indd 11

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR 9 12/1/10 8:47 AM

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Are your benefit plans, such as retirement, profit sharing, medical reimbursement, Section 125 or 401(k) plan, appropriately documented within the corporate records and in full compliance with the law? Are the summary plan descriptions you give to employees up-to-date? Are you strategizing about the impact of the Patient Protection and Affordable Care Act? Have you consulted with your CPA regarding yearend matters, such as tax incentives for such things as equipment purchases, you still may wish to take advantage of before year-end? Have you evaluated the cost of your workers’ compensation program? Have you shopped for enrolment in a workers’ comp group that provides good savings (discounts) and effective third party administration? Have you gone online and looked at your claims history to identify your major claims? Have you met with your workers’ comp attorney to devise a plan to eliminate costly claims from your experience and reduce your premiums? For those key employees hired this year, do you have employment agreements in place addressing such

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things as non-disclosure of confidential information and non-competition? It’s not too late. Have you reviewed your general liability insurance and other business coverages with your agent to ensure proper, cost effective coverage? Are your licenses to do business in various locales current? Have you reviewed the exempt and non-exempt wage-hour status of your employees to ensure wages and applicable overtime are being paid properly and records maintained appropriately? Your personnel policies and practices may require modification due to recent NLRB decisions applicable to non-union employers – is your employee handbook up-to-date? Remember to run the numbers on your OSHA 300 logs and to prepare the 300A for posting

Dust off those corporate records and make sure that everything is ready for 2013. If you need legal assistance in your business affairs, contact Bob Dunlevey at Dunlevey, Mahan & Furry (937) 223-6003.

Select from our extensive inventories...

Put highly productive capabilities and people to work on your custom project...

Frank Gates 2013 Group Rating

ENROLLMENT REMINDER

gain this year, our association is sponsoring a workers’ compensation group, so that our members can continue to receive significant discount off their workers’ compensation premiums. The group administrator, Frank Gates, has sent out enrollment materials to all returning employers who qualify for the group. If you have not enrolled in the program yet, the deadline for Frank Gates to receive your enrollment materials is February 22, 2013, but we strongly recommend enrolling as soon as possible to lock in your rate and make sure you don’t miss out on the discount. If your company hasn’t taken advantage of the great rate reduction and services included in the plan, there is still time to be evaluated for the coming group!

Contact your local rep: S.V.F. Sales Co., Ltd. 4901 Brookpark Rd. Parma, OH 44134 216.741.7000 216.741.7003 fax info@svfsales.com www.svfsales.com

To see how your company can benefit from the group program you must complete an AC-3 (Temporary Authorization to Review Information) in the near future. To request a no-cost, noobligation quote, please contact Frank Gates at (800) 395-4119. Note that employers currently in the Frank Gates Group Rating Program do not need to send an AC-3 as they are automatically reviewed for the group rating program. If you are presently in this year’s program and have not received your enrollment materials for the coming year, please call Frank Gates. The deadline to join the 2013 Group Rating Program is approaching! Please call Frank Gates to help find the best option for your business.

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ESSENTIALS OF PROJECT MANAGEMENT COURSE MARCH 13–16, 2013

Northern Virginia, National Conference Center (near Washington Dulles International Airport)

in the Construction Game! n i W o T y a l P

Subcontractor Business Owners • Project Managers • Estimators • Superintendents • Lead Foremen The construction game has changed—but the best techniques for making a profit have not! Your managers must understand the impact of every decision they make and when to say “No” to unfair demands.

The common sense planning, procedures, and communication skills we cover in the Essentials class are your keys to strong productivity and steady profits.

Why Play the Game

If You’re Not Playing to Win?

TOPICS INCLUDE: • The Power of Pre-Construction Planning • Your Secret Weapon: Prefabrication • Partnering with Your Suppliers • Understanding What’s in the Contract • Knowing When and Why to Say “No” • Sharing the Plan: Turnover Meetings • Identifying Lost Time and Delays • Winning at the Change Order Game • Using Scheduling to Avoid Delays • Project Billing and Cash Flow • Painless Project Close Outs

PREVIEW the course at phccfoundation.org/essentials then REGISTER by calling (800) 533-7694. Course is offered only once a year—seats are filling up fast! DON’T WAIT!

PHCC LABOR CALCULATOR Reduce Your Labor Risk & Bid Better! The largest source of risk on a project is labor—you must get the hours right at bid time. Using a standard set of labor units is your key to more accurate estimates, reduced risk and protecting profits.

New Software Version AVAILABLE NOW!

The PHCC Labor Calculator is your source for national average installation times for plumbing and HVACR materials, plus estimating tools for contractors. The new software is simple to use, and is designed to help small businesses standardize their estimating process. Estimators at larger companies can enjoy having an easy tool to quickly check their labor numbers.

LIMITED TIME OFFER! Special upgrade pricing for previous users, available by calling (800) 533-7694.

LABOR CALCULATOR BENEFITS: • Provides average installation times so estimators don’t have to start from scratch. • Provides independent third party verification of the labor required to complete required work. • Two levels of adjustments allow you to tune the numbers to be accurate for your company and job. • Database updates can be downloaded as they are released from the Foundation (subscription required). • One purchase allows installation on three computers. • Expanded Reference Manual guides new estimators through a sample bid with helpful estimating calculators and spreadsheets included.

TRY IT NOW FOR FREE!

Download the 30-day trial version at phccfoundation.org/Laborcalculator 12

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

2013 ACCA/PHCC CONVENTION Great Wolf Lodge 2501 Great Wolf Drive, Mason, OH 45040 513.459.8885 | www.greatwolf.com

2013 CONVENTION SPONSORS Platinum

www.championpump.com

www.federatedinsurance.com

Silver

www.rhs1.com

www.2-jsupply.com

www.corkensteel.com

he Great Wolf Lodge has been selected as the site for the 2013 ACCA/PHCC Ohio Convention and Expo. From the moment you enter the soaring lobby and find yourself surrounded in their North Woods theme, you will know you have escaped from the ordinary. The days of the same dull meetings blending into the same tired backgrounds are over. Immerse yourself in warm environs and the convenience of an “Everything Under One Roof” destination. You can park your car and never need it again until it is time to return, reluctantly, home. Spacious guest rooms, amazing restaurants, a luxurious spa, fitness center and world-class entertainment are all yours to be enjoyed within the beautiful confines of our majestic resort. What could be more “outside the box” than a 78,000 sq. ft. indoor water park with 11 water slides, a giant wave pool, 6 swimming and activity pools, a lazy river and two 30 person hot tubs, just to name a few exciting features of our indoor entertainment area? Our state-of-the-art arcade provides a variety of creative team-building opportunities while our Iron Horse Fitness Center will keep your health-conscious attendees in top shape.

Bronze

www.columbiagasohio.com Convention Bag: Carr Supply www.carrsupply.com Welcome Reception: Williams Training Agency www.williamstrainingagency.com Lanyards: Habegger Corp. www.habeggercorp.com TV Give-Away: Federated Insurance www.federatedinsurance.com Bag & Bar Item: Enterprise Fleet Management www.efleets.com Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

SCHEDULE AT A GLANCE Wednesday, March 6, 2013 12:00pm-5:00pm Electric Code 1:00pm-3:00pm Chapter Leadership TBD Basco Tour 7:30pm-9:30pm Opening Reception

Friday, March 8, 2013

Thursday, March 7, 2013 7:00am - 8:30am 8:30am - 10:30am 8:30am - 10:30am 10:30am - 12:00pm 12:00pm -1:00pm 1:00pm - 4:00pm 4:00pm - 8:00pm 7:30pm 7:30pm 7:30pm

Opening Breakfast w/Keynote Speaker ACCA Annual Meeting PHCC Annual Meeting Seminars LUNCH Seminars PLUMBING/HVACR EXPO ACCA Past President’s Dinner PHCC Past President’s Dinner Auxiliary Past President’s Dinner

6:30am - 7:30am Continental Breakfast 8:00am - 11:00am Roundtables 11:30am - 12:30pm Closing Brunch 1:00pm - 2:00pm Legislative Update 2:00pm - 3:00pm Energy Efficiency Standards Update 3:00pm - 4:00pm Labor Employment Law Developments/ Consumer Protection Regulations 5:00pm - 7:00pm Reception/Raffle 7:15pm - 10:00pm ACCA/PHCC Installation & Awards Banquet

2013 SEMINAR SESSIONS WEDNESDAY, MARCH 6, 2013 W-1, 12:00PM- 5:00PM: Mike Farrell - Earn 5 CEU’s and Get the Shock of Your Life! Mike returns to facilitate our Electrical Code Seminar. Mike has over 20 years of experience as an electrical contractor in Ohio and Michigan. Every day installation issues (common problems to common defects) for residential & commercial will be addressed. W-2, 1:00PM-3:00PM: Kordell Norton, What Did He Say Again?! - Kordell’s back in this highly interactive session for volunteer leaders. You’ll learn the amazing secrets of PUBLIC SPEAKING! The Introduction; secrets of the first and last 30 seconds; Why you never want to use jokes; Timing; PowerPoint tips, tricks and traps and the power of the pause.

THURSDAY, MARCH 7, 2013 7:00AM: Paul Carpenter, Learn 3 Secrets to Stay Ahead of the Pack - Our opening keynote speaker is a Management Development Expert, Author of the Inch Principle, Trainer, Consultant, Speaker and Founder of The NTR Group, LLC. 14

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

10:30AM-12:00PM T-1, Paul Carpenter, More Secrets to Stay Ahead of the Pack - Paul will dive deeper into the three productivity preventers. With most companies, PRODUCTIVITY is in high demand. The problem is there are three things that continue to plague and attack the PRODUCTIVITY of your employees, managers and customers. T-2, Thomas Bloom, Don’t Touch That, It’s Hazardous! - Tom has been an industrial hygiene and safety professional for over 40 years. He will be sharing the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). Attendees to this presentation will learn: What is GHS? What are its primary benefits? What’s the ‘new’ hazard classification system and what changes and enhancements are coming? Attendees will take away the next steps on current HAZCOM programs. T-3, Great Wolf Lodge Tour, We’re Not in Kansas Anymore! - The GWL Tour is a behind-the-scenes tour of what makes the 79,000 square foot-indoor water park operate. Guides will lead our attendees through the various departments and ‘underbelly’ of the resort, all while providing a wealth of interesting and intriguing information and facts about the operations of the resort.

12:00-1:00PM LUNCH 1:00PM-2:30PM T-4, Bill Harrison, Secrets to the Ultimate Success, -This seminar is the most powerful ever presented by The Coach. It will walk every senior manager through the exact steps required to get the proper behavior change from every person in the organization (The Coach warns, “If you could never admit that you might be the problem, then this is not the seminar for you”). T-5, Board of Building Standards, STOP! My Head Hurts! Residential Code and other Updates - Join our panel as they discuss the new changes in the Residential Code of Ohio and give other up-to-date information on the Board of Building Standards. T-6, GWL Tour (see T-3) 2:30PM-4:00PM T-7, Marvin Montgomery, Preparation & Practice for Peak Performance - Join the Marvolution and GET MARVINIZED! Marvin returns to teach the Professional Customer Approach and Effective Closing Techniques. You’ll also receive valuable information about the Needs Assessment in this new and dynamic presentation. T-8, Dana Williams, What’s in Your Code Book? - Always informative, well attended and a convention favorite, Dana will present this seminar on the ever popular Ohio Plumbing Code. Dana has been a State of Ohio certified Plumbing Inspector since 1988 and a Licensed Master Plumber since 1987.

RT-7 RT-8 RT-9 RT-10 RT-11 RT-12

Bill Harrison, Ultimate Success Steven Shaffer, Leadership Transformation Jeff Heger, 50 Ideas in 50 Minutes Deborah Ratcliff, Preventing & Preparing For Cyber Attacks Jeff Jollay, the New Lead Laws Chuck White, Water Audits

*These two (2) roundtables qualify for the Bureau of Workers’ Compensation (BWC) rule that requires that all employers in the July 1, 2013 Group Rating Program or Group Retrospective Rating Program, who had a claim within the two preceding calendar years, must attend and document two hours of safety training between July 1, 2013 and June 30, 2014. F-1, 1:00PM, Palmer McNeal & Kitty Zwissler, I Hate Politics, but I Love the Legislative Update! Learn how to influence your legislators and why it’s so important to participate in the legislative process plus get the latest updates from Columbus. Palmer and Kitty return to facilitate this popular and informative update. F-2, 2:00PM, Jon Melchi (HARDI), Charlie McCrudden (ACCA) and Chuck White (PHCC), What’s so Efficient about Energy? Don’t miss this valuable panel discussion about the upcoming Energy Efficiency Standards with our national association experts. F-3, 3:00PM, Richard Carr & Amy Mitchell, The Lazy Man’s Guide to the Next 4 Years - Directors with Dunlevey, Mahan & Furry, Mr. Carr and Ms. Mitchell will discuss what contractors can expect over the next 4 years with an emphasis on Labor/Employment Law Developments and Consumer Protection Regulations.

T-9, Kenny Watson, My Phone is Smarter Than I Am! - Kenny returns to share how your company can continue to benefit from the use of modern technology. Some topics include: Custom Databases, Smartphones & Tablet Computers and more…This will be another great session with plenty of Q & A.

FRIDAY, MARCH 8, 2013 8:00AM-11:00AM: Round Tables Our Friday morning sessions address your most challenging issues. Each round table is one hour and provides attendees with an opportunity to listen, question, and get lots of answers in a small-group exchange. You can attend three (3) of these unique opportunities: RT-1 RT-2 RT-3 RT-4 RT-5 RT-6

Liz Hersh, Social Media Federated Insurance, Health Insurance Tom Bloom, BWC* Kelly Denk, Workers Comp* Cheryl Roahrig, Ohio Mechanical Code Marvin Montgomery, Overcoming Price Resistance

Stay Ahead of the Pack at the 2013 ACCA/PHCC Ohio Expo! Again, this year we will be giving away one 32” flat screen TV each hour during the Expo and another on Friday after the roundtables. Be sure to sign up and join us! You must be in attendance to win. Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

2013 OHIO EXPO EXHIBITORS (as of 12-1-12)

COMPANY BOOTH 2J Supply www.2-jsupply.com

ACCA Ohio www.accohio.org

Arzel Zoning www.arzelzoning.com Blue Angel Pumps

Bucher Services BWA South www.bwasouth.com Carr Supply www.carrsupply.com Champion Pump Co www.championpump.com

6 9 12

49/60

Clarion Bathware www.clarionbathware.com

Contractors Choice www.contractorschoiceinc.com

Corken Steel www.corkensteel.com Disney McLane www.disney-mclane.com Draincables Direct www.draincables.com Enterprise Fleet Management www.efleets.com

MTech www.mtechcompany.com

Ohio Association of Plumbing Inspectors www.oapi.org

Palmer-Donavin www.palmerdonavin.com

1/2

PHCC Ohio www.phccohio.org

Progress Supply www.progresssupply.com

83/84

Famous Supply Co www.famous-supply.com

13/14/23/24

Robertson Heating Supply www.rhs1.com

Foundation Software www.foundationsoft.com

Sioux Chief Manufacturing www.siouxchief.com

Glentronics, Inc. www.stopflooding.com Great Lake Sales Co www.glsco.net Habegger Corporation www.habeggercorp.com

Streamkey 39 www.streamkey.com

Midwest Spec www.mwspec.com

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2012, Issue 4

37/38

Winstel Controls www.winstelcontrols.com

61/62/71/72

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Departments

Keeping Score

Michael Bohinc. CPA

FAMILY BUSINESSES

his past fall I was doing research on the unique challenges that family businesses face in preparation for a seminar at the national convention. Eighty to ninety percent of all businesses in the United States are family-owned. Yet, family business issues have impacted some internationallyknown companies including Adidas, Puma, Robert Mondavi Vineyards, Friendly’s Restaurants and U-Haul. The first, and most unique, challenge in family businesses is issues within the family. What are some of those issues? Financial, Health, Divorce and Sibling Rivalry. Most families who own businesses have most of their wealth tied up in the businesses themselves. This can cause financial problems for the family. Health problems of owners and family members in management can cause issues as well. Some family businesses have ended up in the hands of non-family members who know nothing about it because of a divorce settlement. Imagine your business being owned by a daughter or son-in-law who knows nothing about and has no interest in your business because a shareholder gets divorced. Earlier, I mentioned some well-known businesses that either went under or were significantly impacted by family business issues. One of the biggest was due to sibling rivalry. What is it? Sibling rivalry is a type of competition or animosity among (usually) brothers and sisters. In business, there are two types of sibling rivalry: strategic and emotional. Strategic rivalry is where the siblings have differing views on running and growing the business. It’s often differing personalities and life goals. It is sibling-based. Emotional rivalry is not siblingbased. It is child-parent based. The focus is on the child gaining recognition and approval from his or her parent. It’s self-esteem driven. Some family business issues are intertwined. Two of those are lack of proper chain of command and lack of shared vision or goals. Whether it’s the Love Boat and Captain Stubing or the Starship Enterprise and Captain James T. Kirk, there can only

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

be one captain on a ship. The same rule holds true for family businesses. There can only be one captain (leader) of your company’s ship! In conjunction with this, if there are multiple family members involved in the management of the business, it’s vital that they have shared and clear goals for the business. You can’t have conflicting goals or visions amongst the family. You’d have people in the same boat rowing in different directions and the boat would go nowhere. The next issue is a lack of documented systems, policies and procedures. It is imperative to the success of the business to have complete and documented (written) systems for the company as well as policies and procedures. Items like compensation, vacation, work hours, etc. for family members must be determined. Additionally, all rules must be applied evenly and consistently. If a family member breaks a rule, they should be punished exactly the same as a non-family member. The business I typically compare our industry to in this regard is McDonalds. Regardless of your opinion on the quality of their food, contributions they make to society, or their actual policies and procedures, you cannot question that they have done an outstanding job of documenting the systems, policies and procedures of their business. The final issue that I want to discuss is also probably the biggest issue that family businesses have to resolve. That is the issue of communication or, lack thereof. If you work with your husband or wife, when you leave work, work often comes home with you. Not only are you husband and wife but, you’re also co-workers. It’s hard to keep the work at work and family issues at home because they’re so often intertwined. Like many of you, I’ve had holidays and family gathering ruined because business discussions infiltrated the dinner table. Thankfully, that’s no longer an issue for my family. See if any of these communication issues sound familiar. Interactions that include emotions, talking over each other, pitting parents or siblings against each other, not trying to

Distributed By: R.L. DEPPMANN COMPANY (800) 589-6120 - www.deppmann.com

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Michael A. Bohinc is a certified public accountant in Cleveland, OH. He is an instructor for the National PHCC Educational Foundation. He is also a Consult & Coach Partner for the Service Roundtable and an Advisor for the Service Nation. Michael received the Servant Leader Award from the Service Roundtable at the 2012 Mechanical Systems Week Conference. The award, rarely presented, recognizes outstanding individuals who lead through service to their industry and the people in their industry. Michael joins a distinguished group of Servant Leaders that includes industry icons like Frank Blau and Tom McCart. He has 24 years’ experience working on business management issues in the HVAC and plumbing industries. He can be reached at: 440/ 708-2583, e-mail mbohinc@ keepingscorecpa.com. 22

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Experience

Serving Ohio employers

Personal Customer Service since 1946.

Quality

We know workers’ comp.

Savings

Stability

understand the other person’s view point because you’re too busy pushing your own. Think about this: How would you handle the situation or conversation if it wasn’t a family member? While I’m not a big fan of reality TV, one of the shows I have seen a number of times is called American Chopper. I don’t watch it because I like motorcycles. I watch it because it’s about a family (Teutuls) that owns a motorcycle business. I’ve seen some of my own family business issues on the show. I’ve learned by watching them deal with their issues on television. Some tips you can try to improve communications between family members are: communicate openly, keep your work and personal/family lives separate, build in time for family fun outside of work, respect each other and take the emotion out of your conversations. By being aware of these potential issues and some of the ways to deal with them, you can keep your ship on course full-steam ahead to the Sea of Success! U.S. Treasury Department 230– Disclosure: To been • Rely onCircular our stability Frank Gates has serving Ohio employers since 1946. ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This handout is not intended to be comprehensive in nature and competent professional tax advice should be sought in determining the issues that impact your specific situation.

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Departments

PHCC Ohio Local Chapter NEWS There are seven local chapters affiliated with PHCC Ohio: Akron, Cincinnati, Columbus, Dayton, Eastern Ohio, Northeast Ohio and Stark County. PHCC Ohio and our local chapters are affiliated with the Plumbing-Heating-Cooling Contractors national association. Together our Associations (local, state and national) form one of the nation’s largest and strongest trade organizations and they comprise the only organization working around the clock exclusively in the interest of Plumbing-Heating-Cooling Contractors. Akron PHCC Chapter President: Tim Frecka, Frecka, Inc 330-928-9230 contact@freckaplumbing.com Executive Secretary: Mary Williams 330-958-3602 akronphcc@yahoo.com Central Ohio PHCC Chapter President: Rodger Sweitzer, Baumann Plumbing 614-888-2411 baumanplumbing@ameritech.net Secretary/Treasurer: Mike Lauber 614-679-6252 mikelauber@aol.com Cincinnati Master Plumbers Association Chapter President: Jeff Heger, Nixco Plumbing 513-398-5907 jeff@nixcoplumbing.com

Executive Manager: Theresa Engler 937-298-2980 daytonphcc@aol.com PHCC Eastern Ohio Chapter President: Doug McIntire, McIntire Plumbing 330-339-1539 mcintireplumbing@gmail.com Secretary: Greg Eisenhart, Sanford Plumbing & Supply 330-386-5191 plumber@spii.net Northeast Ohio Master PHCC Chapter President: John Sbrocco, J.R. Sbrocco Plumbing 440-442-7940 jrsbroccoplumbinginc@gmail.com Executive Secretary: Debbie Tittl 440-337-4285 neomphcc@aol.com

Executive Director: Joyce Frank 513-742-2672 cmpa@cinci.rr.com

Stark County PHCC Chapter President: Mike Kolp, J.L. Kolp Plumbing & Heating 330-499-8353 mkolp@neo.rr.com

Dayton PHCC Chapter President: Mike Waker, Waker Plumbing 937-434-2678

Secretary: David Keister 330-895-4256 dkeister@plbgweb.net

Congratulations to the new officers of CMPA! PHCC Ohio President Greg Eisenhart was in attendance at the CMPA Installation Banquet to install CMPA’s 2013 Officers. (l. to r.) Jim Dupps; Jim Evans; Mike Tarvin; and Jim Eckhoff.

Akron PHCC member Miracle Plumbing was voted “#1 Favorite Plumber” in the Annual Canton Repository Readers Choice Awards! Baum Plumbing (#2) and Grabill Plumbing (#3) were also recognized.

Three CMPA members had perfect attendance at their eight membership meetings for the year. Congratulations to (l. to r.) Henry Hofmeyer; Ron Zins; Bret Specht (Emcee); and John Kerlin.

Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Time Management:

! X A O H

It’s a By Bill Harrison

et you wish we had a quarter for every dollar spent on time management books, CDs, DVDs, workshops and magazine articles. We could be retired and living in luxury anyplace in the world we choose. With all that money thrown at time management “stuff”, why are we still having time management “issues”. It is really quite simple; no one can manage time; it is impossible. Time just is. Look at the clock on the wall, or your watch. Does it have a second hand? If the answer is yes then you watch it go around once, sixty seconds in duration, and you have a minute of time. Look at the minute hand. It goes around based on the seconds until sixty minutes have elapsed and then we have an hour of time. How about that hour hand? It goes around 24 clicks and we have one day, correct? You are on your own to do the days, months and years. The point is - nothing you can do to change that inexorable tick-tock-tick. OK, leap year throws in an extra day. What does this mean? It means we have been looking in the wrong direction. Have you ever said something like this: “There just aren’t enough hours in the day”? Bet you have! We must focus on what activities we place in the time we have; because everyone has the exact same amount of time. Yes, it does seem shorter when we are doing something fun, and longer when it is a drudge task; but it really is the same old tick-tock-tick. When at work, do we place social activities into the time allotted? We talk about the weather, sports, our families, hobbies, etc., etc. etc. Do you get on the internet for personal reasons? Probably many of us do. And all this is OK if we do it in moderation; and most importantly when it doesn’t interfere with a priority task. You see, one thing that delays an important task is our trying to avoid that task by putting low priority items into the time we have. Go ahead, think about it. Admit you have done this before; maybe daily.

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

What to do? The first thing to do is to get a to-do list; one that works for you. For some of us it is written on paper. For many others it is on an electronic device of some sort. When we write things down, in lieu of electronics, it triggers that computer between our ears to help us deal with it better. That is the number one reason for writing things down; not to remember stuff. Once we have a to-do list we must set the correct priorities. Whatever has the biggest impact on our success should be the top priority; that is the most important. Of course, if we don’t set priorities and work those items, we may end up with something urgent. Something urgent is most often something important we didn’t get to in a timely manner. We didn’t get to it because we didn’t write it down, or ignored our list, or just delayed getting to it. Can you relate to this? So, we get a to-do list and we go over it regularly, several times a day. Why that often? Because “stuff” is going to be added as we go through our day. When do you write it down and prioritize it? Right away! How many times have you told yourself you would remember something important, and you forgot? And it bites you where? You see, forgetting things is a big time waster. When we miss something important and it becomes urgent, only bad things will come from it.

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C.P.I. MARKETING Columbus, Ohio Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

So get a to-do list; do it now. If you have one, build the habit of looking at it several times a day. Keep juggling priorities as you go to stay focused on the important; before they become urgent. Add items as they come up during the day.

Then what? As you look at your priorities start your day by tackling the biggest, meanest item on your list first. Once you get started you have created some important momentum. Starting on low priority items or just delaying tactics and you start to overwhelm yourself. Most folks who claim there isn’t enough time actually overwhelm themselves. Once you dig that hole it is tough to climb out. Work your to-do list diligently and never get in the hole. This is important! Ever say: “When I get the time I will get “this” done”? Most humans are driven by something called “closure”. We feel we must finish something we start, and do it in the same time block. If you have been in this industry for more than 24 hours you must realize that distinct blocks of time to start and finish things is non-existent. There is too much “stuff” coming at us all the time. When we say we will get the (fill in the blank) done when we get the time, and time runs out, what happens? It is not a pretty picture. Bite the elephant! Learn to work on things in bits and pieces and bite the elephant one bite at a time. Do you have 30 minutes until your next meeting? Look at your to-do list and work partially on something on your list. Are phone calls on your list? How many can you make in 30 minutes? Got some time? Do some work on a paperwork or research item. You must learn to get comfortable with fitting partial things in the time allotted and not getting them all down at one time. You must get comfortable with no distinct blocks of time to permit closure. The biggest time waster is doing nothing relevant until we get enough time to finish something from start to finish. The chances of that happening are slim to none. Work partially on priority items when time permits and you will be shocked at how much you get done. Don’t have time to get a to-do list? Bull! E-mail me when you get your list and are using it every day. Tell me how it is working for you. Please sign up for Bill Harrison’s Ultimate Success seminar at the 2013 Convention. Remember – The Coach does not succeed until you do. Just do it! 26

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

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Stop Playing The Game By The Prospects Rules! Symptoms 95% of service consultants are at the Decision Maker’s (Business or Homeowners) mercy. That’s right, the Decision Maker is in control because they have the rules, and they get you to play by them. They are like the great and powerful OZ. And it’s costing you money, not to mention how it’s messing with you and your team’s mindset. Diagnosis For most, the vast majority of sales opportunities are controlled by the decision makers. These “prospects” are calling all the shots, and most service consultants are simply going along for the ride. Prospects work very hard to control the process in order to protect themselves from the stereotypical “product pusher” that everybody hates. Prospects love to buy, they hate to be sold. So as long as the “selling” continues, they will fight for the lead. They will want you to play by their rules. Here are a few of the Prospects unspoken rules: • Rule #1: I’ll dangle the carrot in front of you so you think there’s a possibility of business. Basis: You may be willing to discount, add extras and let down your guard. • Rule #2: I may not be totally honest with you about my situation. Basis: Lying is not a sin in a sales situation and if I tell the whole truth it may give you an edge over me. • Rule #3: I’ll pick your brain and get as much information as I can. Basis: If you give me enough of your expertise, I might be able to solve this problem myself. • Rule #4: Always ask for the proposal on my terms. Basis: I’ll shop your proposal around to see if I can get a better deal somewhere else. (And I won’t even say, “Thanks for your help.”) • Rule #5: If I don’t want to talk to you, I won’t return your calls. Basis: It would be very hard for me, the prospect, to tell you no after I have taken your information to better my situation and I have no plans to pay you for your free offers. • Rule #6: Always take the “Think it over” option. Basis: I’ll keep you twisting’ in the wind for as long as possible if it suits my purposes.

Rule #6: I won’t place any value on your time. Basis: You are the sales person - I am not concerned with what you get out of this. Conventional wisdom says this is just the way things are and not much I can do about it. I’ll get my fair share of the business. If you want to raise your weekly average, if you want to get more than your “fair share”, stop playing by their rules. Take charge and set the rules yourself. •

Prescription At the beginning of any opportunity, you have a chance to suggest the “rules”. Letting your prospect know early how you work will make a huge difference in the outcome. The best way to stay in control is to SERVE your prospect. SERVE is a way to keep control while working to see if there is a fit between you and your prospect. SERVE has 5 basis principles or “Rules” by which it operates. Rule #1: S - Set the Appointment - Establish the need from a prospect and ask if they would like to invite you in. Rule #2: E - Examine the problems and or priorities - This is the diagnosis step (you should be getting paid for this step). Rule #3: R - Recap what you have found - Focus on “the what,” not “the how.” Rule #4: V - Verify the price to do the work - Protect yourself from getting started before they have offered to pay you. Rule #5: E - Engage upon their decision - This is the one chance the prospect gets to be in control. They can say “Yes, let’s get started!”, “No, I’m not interested” or offer a clear next step if they want you to come back. By using the SERVE model for growing your business you remove the opportunity for prospects to use their rule book against you. One set of rules is going to be used on every call. The odds grow exponentially in your favor when you use yours! As you plan your next call, enjoy SERVE(ing) your new customer! Paul Carpenter is a Human Dynamics Guru with Zone Insights a training and development firm. Come see his opening keynote and attend his seminar at the 2013 Ohio Convention and Expo. He can be reached at paul@zoneinsights.com. Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 4

Top Reasons to Join PHCC ADVOCACY Powerful representation to defend you against excessive regulations in your community

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Without PHCC You Stand Alone! Join over 3,000 independent PHC Contractors to put PHCC Power in your Business! Volume 2012, Issue 4 • OHIO PHC CONTRACTOR

Departments

PHCC of Ohio 2012 - 2013 Officers & Board

PHCC of Ohio

20040 Carolyn Ave Rocky River, OH 44116 800-686-PHCC [7422] Fax: 216-393-0095 www.phccohio.org www.facebook.com/phccohio

Officers President Greg Eisenhart Sanford Plumbing & Supply 330-386-5191 Fax: 330-386-5470 1725 Pennsylvania Ave East Liverpool, OH 43920 plumber@spii.net

President-Elect Rob Fetz Fetz Plumbing-Heating & A/C 937-652-1136 Fax: 937-652-0015 PO Box 516 Urbana, OH 43078 rftz@iapdatacom.net Vice-President Jim Haberek Haberek Plumbing & Heating 216-433-7774 Fax: 216-433-7776 5330 Smith Road Brookpark, OH 44142 office@haberek.com Treasurer Bruce Stebbins Stebbins Plumbing & Heating 937-859-4534 Fax: 937-859-5441 621 E Dixie Drive West Carrollton, OH 45449 stebplumb@gmail.com

Staff

Rocco Fana, Jr. Executive Director

Debbie Tittl Executive Assistant

Mary Williams Executive Assistant

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2012, Issue 4

Past Presidents Advisory Committee Dave Keister Keister Plumbing & Heating 330-895-4256 Fax: 330-895-4791 1215 Aurora Road Minerva, OH 44657 dkeister@plbgweb.net

Greg Faustina The Plumbing Source 216-365-0600 Fax: 216-365-0166 5042 Corbin Bedford Heights, OH 44128 greg@plumbingsource.net

Dennis Schlekie Approved Plumbing 440-526-2905 Fax: 440-526-7698 770 Ken Mar Industrial Pkwy Broadview Heights, OH 44147 Dennis@approvedplumbing.com

Trustees Zone 2 Ronald Schmitt Joe Schmitt & Sons Plumbing & Heating 937-836-3086 Fax: 937-832-1827 500 Atla Ave; PO Box 237 Englewood, OH 45322 schmitt.ronald@gmail.com

Zone 6 Paul Episcopo VIP Plumbing, Inc. 216-581-5731 Fax: 216-581-5730 20600 Miles Parkway Warrensville Heights, OH 44128 paul@viplumbing.com

Zone 3 Brian Nieman Nieman Plumbing, Inc. 513-851-5588 Fax: 513-851-9104 2030 Stapleton Ct Cincinnati, OH 45240 brian@niemanplumbing.com

Zone 7 Tom Shuman Shuman, Inc. 330-688-2322 Fax: 330-688-3151 28 Castle Dr Munroe Falls, OH 44262 tjshuman7@gmail.com

Zone 5 Rodger Sweitzer Baumann Plumbing 614-888-2411 Fax: 614-262-4958 22 Westerville Square Westerville, OH 43081 baumannplumbing@ ameritech.net

Zone 9 Rick Seifert D & A Plumbing & Heating 330-449-8733 Fax: 330-499-8747 11197 Cleveland Ave NW Uniontown, OH 44685 ricks@crowngroupohio.com

Development

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Our members say it best! Quality Service Contractors (QSC) is an elite professional association that assists plumbing and HVACR service and repair contractors. We help each member reach their potential in our increasingly demanding industry. As a member, you benefit from business management services and state-of-theart training to enhance your image and enable you to better serve the needs of your clients.

SAVE OVER $900 Join QSC now, get 15 months for the price of 12! Offer ends December 31, 2012.

For more information call (800) 533-7694 or e-mail wallace@naphcc.org Volume 2012, Issue 4 • OHIO PHC CONTRACTOR