Welcome to the first edition of The Voice for 2025! This issue dives into key strategies for franchise success, focusing on both financial health and customer relationships
Inside, you'll find invaluable insights from fellow franchise owners. Mark Stepowoy tackles the crucial topic of profitability, urging us to move beyond a " we get what we get" mentality and adopt proactive financial planning.
Jason Myers reminds us of the power of prioritizing Occupational Safety and Health, highlighting how a focus on well-being can drive productivity and build a stronger organization
And in "Service That Sticks," we explore actionable strategies for cultivating customer loyalty, emphasizing that in today's market, exceptional service is the true differentiator
In addition to these insightful articles, I want to remind you to mark your calendars and register for the 2025 convention in Clearwater Beach from June 23-27! This event promises to be an invaluable opportunity to network, learn, and gain fresh perspectives to propel your franchise forward.
We hope this issue provides you with valuable insights and practical tools to enhance your franchise's success in the year ahead.
Thank you for being a part of The Voice community!
Ryan Dillard
BEYOND "WE GET WHAT WE GET"
BUILDING A PROFITABLE MODE
MARKSTEPOWOY | MEDINA, OH
A cross section of franchise owners gets together quarterly to tackle problems that we all face as owners. We share ideas and best practices in a quest to constantly improve. These Peer Group meetings started when Roto-Rooter Corporate set up Water Mitigation training a few years ago and it has somewhat involved into something beyond Water Mitigation.
At our most recent Peer Group meeting, we reviewed the annual profit percentages that were reported by a majority of the franchise owners that were present and what caught my attention was not only the wide range of numbers, but there seemed to be a larger number of franchises that I believe to be operating with too little profit margin or “profit percentage” as the moderator termed it
“Profit Percentage” could represent a few different formulas and aliases such as “EBITA” or “Operating Profit” but for the purposes of this article let’s stick with “EBITA” which represents Earnings Before Interest, Taxes and Amortization. It’s basically your profit without any deductions for Interest Expense or Income Taxes (and Amortization which many franchise owners do not have) divided into your revenue.
f your business made $200,000 in EBITA and revenue was $2,000,000 your profit percentage would be 10%.
It appeared that there were two main categories of comments or thoughts that followed this portion of the round table discussion:
First, too many owners didn’t employ a formal financial model to follow whereby various percentages for expenses like Technician Wages were known or understood Additionally, there wasn’t an expected EBITA percentage either It seemed to much like they settled for “we get what we get” without enough of a game plan or direction.
Secondly, it seemed to me that there was some sentiment in the building that some owners were either uncomfortable making too high a profit percentage or that it’s almost impossible to chase profit and take good care of customers at the same time, most especially older and / or poor customers. There was a dichotomy that you either serve the public well and make no money, or you serve the public poorly and make a lot of money.
I argue that you can’t be good to your customers, your vendors, your employees and yourself if you don’t make a reasonable profit It’s not greedy to want to have money left over after paying all your bills That should allow you to reinvest resources in the company, save capital for emergencies, share in employee bonuses or do any type of philanthropy that you wish to do
Not only is it not greedy to want to show a profit, but it is also essential.
So, what constitutes a reasonable profit?
When I was trained at Roto-Rooter Services Company back in the mid-1990’s, our profit goal (EBITA) was set at 20% and that percentage stuck to me like no other in my 45-year career. I remember going through our first Profit & Loss Statement with my boss on my very first day of employment (Tuesday September 6, 1994).
I had recently been underemployed, which in some ways is worse than unemployed, and I vowed to myself that I would never need a job again I was all-in on making Roto-Rooter take me to my retirement years in grand style And locking into their financial model of making 20% EBITA changed my life
I learned that a good goal is like a magnet – it draws your attention to it all the time and forces you to think about the bottom-line ramifications of every decision you make.
Focusing on a profit goal doesn’t necessarily mean that your business will become a sweatshop devoid of investment and seemingly cheap at every turn It simply means that if you make any type of investment (people, equipment, service) you need to set a performance expectation so the return on that investment fits inside the expected modeled EBITA percentage
In simplest terms you can’t add a new position that doesn’t pay for itself. Should you invest in something exotic like CIPP Lining Equipment, you must calculate and understand the increased revenue and gross profit dollars required to make the purchase fit your financials.
Frankly, all your management decisions need to be within the confine of your financial model.
And thirty years later, for franchises that largely focus on plumbing and drain cleaning service, that 20% EBITA number is still the gold standard in terms of an EBITA goal Those franchises that have successfully added Water Mitigation (Restoration) frequently find themselves aiming for 35% EBITA – and I understand this to be the new goal at Roto-Rooter Services Company
My friends, if you don’t have a financial model complete with an EBITA goal, I’m not sure how-
you can readily make decisions I urge you to learn financial statements – most especially the Income Statement and set a profit goal for the balance of this year and create a financial statement monthly that you can review I suggest you try the 20% goal that changed my life
Profit can allow you the opportunity to share your wealth with whomever you desire You can create formal profit sharing for your employees, pass out end-of- the year bonuses, prepay expenses for the next year, and donate goods or services to elderly or poor people. You can stand in the middle of town square and indiscriminately pass out $100 bills as people walk by.
ut without profit, you can’t do much or may not even keep your franchise; and without a profit goal, you probably will not have much profit to worry about.
Later this spring, possibly early summer, I’m hosting a training session explaining our accounting and financial systems and general business model I will have several of our branch managers attending, along with our CFO I’m offering all franchise owners to attend at no cost If you aren’t routinely making 20% EBITA or more at your franchise, this may be a great opportunity If you are interested simply email me at Mark@Steprises com
THE POWER OF HELPING OTHERS: A JOURNEY THROUGH OCCUPATIONAL SAFETY AND HEALTH
JasonMyers|KansasCity,MO
In today’s fast-paced world, it's easy to overlook the importance of family, community and care within the workplace. However, the field of Occupational Safety and Health (OSH) serves as a reminder that prioritizing the well-being of others can lead to extraordinary benefits—for individuals, our organizations, and society.
OSH is more than just a set of guidelines and boring regulations. At its core, it is an ethos centered around compassion, responsibility, and the unwavering commitment to safeguard the health and safety of those we work with. By cultivating a workplace culture that values these principles, we can create environments where everyone, from the laborer, management and ownership thrive.
Enhancing Well-being and Productivity
When our employees feel safe and supported, their overall well-being and job satisfaction can improve significantly. This, in turn, boosts productivity and efficiency. The act of helping others through OSH initiatives —such as regular safety training, like 5–10minute Toolbox Talks and mental health support—creates a ripple effect that positively impacts the entire organization. Employees are more likely to stay engaged, motivated, and committed to their work when they know their employers genuinely care about their health and safety.
Building Trust and Fostering Teamwork
A strong OSH program fosters trust and camaraderie among employees. When workers see that their leaders and co-workers
are committed to their safety, it builds a sense of trust and loyalty. This trust is the foundation of great teamwork and collaboration. Employees will be more willing to communicate openly, share ideas, and support one another when they know their well-being is a priority.
Reducing Costs and Increasing Efficiency
Investing in OSH initiatives can also lead to significant financial benefits. By preventing workplace accidents and illnesses, organizations can reduce costs associated with medical expenses, workers' compensation, and lost productivity. Furthermore, a proactive approach to safety and health can help identify and mitigate potential hazards before they become costly issues. This not only saves money but also ensures a smooth and more efficient organization.
Cultivating a Positive Reputation
Organizations that prioritize OSH often enjoy a positive reputation both inside and outside the workplace. A commitment to safety and health demonstrates a Continued>>
company ' s dedication to ethical and responsible business practices. This can attract top talent, enhance customer loyalty, and strengthen relationships with stakeholders In a world where corporate social responsibility is increasingly important, a strong OSH program can set an organization apart as a leader in its field
The Human Element: Acts of Kindness and Compassion
At the heart of OSH is the human element— acts of kindness and compassion that can make a tangible difference in people's lives. Whether it's providing proper protective equipment, offering mental health resources, or simply listening to a co-worker's concerns, these actions reflect a deeper commitment to the well-being of others.
By helping each other, we create a culture of care and respect that can improve the workplace and enriches our communities.
In conclusion, the value of helping others through OSH cannot be overstated. It is a powerful force that enhances well-being, builds trust, reduces costs, and cultivates a positive reputation. By embracing this ethos, we can create safer, healthier, and more compassionate workplaces that benefit everyone involved.
Call to Action
As we move forward, let us remember the positive power of helping others. By prioritizing OSH, we can make a profound and lasting impact on the lives of our coworkers, our organizations, and our communities. Together, we can build a brighter and safer future for all.
GET CONNECTED, GET AHEAD: ROTO-ROOTER AT THE
RRFA CONVENTION - A SNEAK PEEK
ThadReinhard|PresidentofRoto-RooterCorporation
Stronger Together. I recall that this was the theme of the RRFA Convention a few years ago, and I believe it still holds a lot of truth. We truly are stronger when we unite. When John Zonarich and Jennifer Brierly approached me to prepare some insights on what Roto-Rooter Corp. would be presenting at the convention— specifically to encourage franchises that might be hesitant about attending - I gladly accepted. I firmly believe that having more attendees benefits everyone involved.
This year, Roto-Rooter Corp. will cover a variety of topics. On the marketing front, Sally Bayer will discuss several key areas. She will share her team’s current market analysis, detailing how they are navigating the challenges posed by Google and the strategies they are implementing to boost call volumes. E-scheduling will also be a key topic. Sally will showcase new videos and commercials available to everyone, highlighting those that have received positive feedback. Additionally, she will introduce the new Roto-Rooter app, discussing its recent success and how franchises can leverage it.
Mark Gerano, our legal counsel at Chemed, will address the extensive efforts involved in managing trademark and
brand-related legal matters. He will explain the processes and timelines associated with these issues and outline our actions when potential violations arise.
Brent Weaver, who oversees our motorsports program, will share insights on past events and future plans for this endeavor, and he will explain how you can get involved if you haven’t yet. He and I will dive deeper into the racing program and answer any questions related to it. This initiative has garnered enthusiastic feedback, and we are eager to share our experiences with everyone.
Last year, Mary Whitt from Services Company spoke about Roto-Rooter national accounts and how to participate. I will provide updates on the successes we've seen in that area and how you can benefit. Additionally, I will share my perspective on all things Roto-Rooter. Topics I’ve been asked to cover include available training, particularly in trenchless technology, accessing the aforementioned videos and commercials, updates on the Roto-Rooter store, and much more.
I look forward to seeing everyone in Clearwater later this month and wish you all safe travels.
CONVENTION 2025 YOU’REINVITED
CONNECT WITH OTHER ROTO-ROOTER FRANCHISES ACROSS THE COUNTRY
Join the largest of its kind franchise convention for a week of learning & leisure
Over 100+ Roto-Rooter franchises represented The biggest and best run operations from across the country attend Convention is the mecca, where growth is sought out, new ideas heard and action taken
Training sessions on a wide variety of topics such as employment trends, marketing trends, technology, and more
Play hard too- built in time with the extended Roto-Rooter family out on the golf course, special tours, meals, beach time and more 1 on 1 time with our selective vendor network to see other prospective products and services that can benefit your franchise
KEY ACTIVITES TO LOOK FORWARD TO THIS YEAR
Calypso Queen Dinner Cruisee
Take in breathtaking vistas while cruising the calm & tranquil waters of Florida. Enjoy dancing, tropical drinks and more.
Shell Key
Discover the beauty of Shell Key on a 3hour Shelling Adventure departing from Hubbard’s Marina at Johns Pass. Golf at Cove Cay
Golf followed by lunch will take place at Cove Cay Golf Club.
Fun Run / Silent Auction
To benefit ADNP Kids Research Foundation
SERVICE THAT STRATEGIES F RyanDillard|Pub
For home service companies more and more often, technical mastery is the ante –exceptional customer service is the differentiator. While proficiency with pipes and pumps is expected, consistently exceeding customer expectations transforms transactions into lasting relationships.
Our Tulsa location's track record, with over 4,500 reviews and an average of 1.7 reviews gained daily over the last year, powerfully illustrates this principle.
I will share some data that highlights the most significant factors contributing to these overwhelmingly positive customer
Beyond Problem-Solving: Leading companies don't just fix leaks; they provide peace of mind. This starts with a genuine commitment to understanding the customer's needs, anxieties, and time constraints.
Empowering Employees: Every team member, from the customer service reps to the technicians in the field, is an ambassador for the brand. Empowering them with the autonomy to make decisions that prioritize customer satisfaction is crucial.
II. Operational Excellence as a Customer Service Tool
Punctuality and Efficiency: Time is of the essence. Utilizing technology to optimize scheduling, provide accurate ETAs, and ensure technicians promptly heads to the job and arrives prepared minimizes disruption and demonstrates respect for the customer's time.
Transparency in Pricing: Surprise invoices erode trust. Providing clear, upfront pricing, detailed estimates, and options for various budgets fosters confidence and eliminates financial anxiety.
Meticulous Workmanship: Set the bar high for quality of work. This includes not only the repair but cleanliness, respect for property, and attention to detail.
III. Communication as a Competitive Advantage
Multi-Channel Engagement: Recognize that customers have diverse preferences, and offer multiple communication channels: phone, email, online chat, and even text messages for updates and reminders.
Active Listening: Training staff to actively listen to customer concerns, ask clarifying questions, and acknowledge their emotions builds rapport and ensures that the solution addresses the root of the problem.
Proactive Updates: Keeping customers informed throughout the service process – from appointment confirmation to technician arrival to job completion –reduces uncertainty and enhances the sense of control.
IV. Leveraging Technology to Enhance the Customer Experience
CRM Integration: Most of us use Service Titan, these systems are essential for tracking customer interactions, preferences, and service history.
Digital Documentation: Providing customers with digital invoices, photos of the work performed, and warranties enhances transparency and provides a convenient record for future reference.
Feedback Mechanisms: Actively soliciting customer feedback through surveys, online reviews, and follow-up calls demonstrates a commitment to continuous improvement and provides valuable insights into customer satisfaction.
V. Building Long-Term Loyalty
Personalized Follow-up: Going beyond a generic thank-you, personalized followup calls or emails show genuine care and provide an opportunity to address any lingering concerns.
Loyalty Programs and Service Agreements: Rewarding repeat business through loyalty programs or offering preventative maintenance agreements fosters long-term relationships and ensures a steady stream of revenue.
Community Engagement: Building a strong reputation within the community through sponsorships, charitable work, or educational initiatives enhances brand image and cultivates customer goodwill.
Conclusion
For the best franchises, customer service is not a department; it's a philosophy that permeates every aspect of the business. By prioritizing clear communication, operational excellence, and a commitment to exceeding expectations, you will not only ensure customer satisfaction but also cultivate enduring loyalty that fuels sustainable growth and reinforces your position as an industry leader for years to come.
