International Door & Operator Industry

NOV-DEC 2012

Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.

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SALES&MARKETING; by John Zoller & David Bowen, Zoller Consulting, Inc. Making Money in the Garage Door Business Do we have your attention yet? Managers of profi table garage door dealerships must be profi cient in three separate phases of the business, specifi cally operations, management and fi nance. Do we have your attention yet? Managers of profitable First, even the smallest one-man dealership must understand the operational part of the business. Mastering the operational facet of the business means understanding the product, including knowing the technical aspects of garage doors and operators as well as how to install and service the product. As the fi rm grows, the dealership owner has to be able to not only make the sale, but then decide which installer will make the installation, what trucks and equipment will be needed and to make sure the manufacturer has the correct order delivered to the dealer in time. This is the "How To" portion of the business and if it is not mastered, customers are unhappy and the dealership's reputation is in jeopardy. As dealers emerge from a one-man gang to a true company, the managerial side of the business becomes critical. The managerial side includes managing employees, setting employee rules such as attendance requirements, starting and fi nishing times, meeting governmental requirements for payroll, securing various insurances for the business and creating schedules for vehicle maintenance and repair and many more issues. For dealers previously interested in only the technical operational side of the business, the managerial employee rules such as attendance requirements, starting and fi nishing times, meeting governmental requirements for payroll, securing various insurances for the business and creating schedules for vehicle maintenance and repair and manymore issues. For dealers previously interested in only the technical operational side of the business, the managerial side can not only appear to remove some of the initial fun of running a business, but also takes the owner away from what previously was thought to be the purpose of the business, i.e., installing and servicing garage doors. The real purpose of a business is to make money. The truth is that for dealers who do not master the managerial side of the business, the garage door business can become a very frustrating job. We have heard some disheartened dealers complaining, "that if it wasn't for demanding customers, unreliable employees and all these decisions, running a door company could be fun!" However, mastering management is the path leading a one-man gang company into a true growing garage door dealership. Management is the "What to Do" part of running a profi table door dealership. side can not only appear to remove some of the initial fun of Finally, there is the fi nancial side of the business, or the "What is Happening and Why" facet of the business. This is the critical third leg of the stool. It is the area the International Door Association currently is focusing on through its Dealer Services Committee. Understanding basic fi nancial skills will move a poorly performing dealer forward. Without basic fi nancial skills a dealer is forever tied to "Cigar Box Accounting." Cigar box accounting makes the dealer feel he or she is doing all right as long as there is some money in the checkbook. This ignores basic cash fl ow factors such as collecting receivables, building inventory, or spending too basic fi nancial skills a dealer is forever tied to Cigar Box Accounting." Cigar box accounting makes the dealer feel he or she is doing all right as long as there is some money in the checkbook. This ignores basic cash fl ow factors such as collecting receivables, building inventory, or spending too Continued on page 33 30 International Door & Operator Industr national Door & Operator Industryâ„¢

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