2009-2010 dealer nsight - amazon s3 · wilmink received a letter from retired u.s. army general...

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R egardless of who you are, how long you have been in business and whether it is a boom or bust economy, it is difficult to maintain a successful business operation. From finding and keeping the right employees, building and maintaining a strong customer base, ensuring sales and prof- its, and developing a successful marketing cam- paign, water dealers have a lot on their plates. Water Quality Products understands the challenges dealers face today and have tried to make the business aspect of your operation a little easier with this Dealer Insight special editorial section. Within the following pages, you will find a variety of content that will assist you in maximizing your sales and profits and will help you gain the competitive edge. It is our hope that this information will better enable you to work on your business rather than in your business. wqp Stephanie Harris, managing editor [email protected] 2009-2010 DEALER NSIGHT A special section in Water Quality Products Business Insights

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R egardless of who

you are, how long

you have been

in business and whether it is a boom or bust

economy, it is difficult to maintain a successful

business operation. From finding and keeping

the right employees, building and maintaining

a strong customer base, ensuring sales and prof-

its, and developing a successful marketing cam-

paign, water dealers have a lot on their plates.

Water Quality Products understands the

challenges dealers face today and have tried

to make the business aspect of your operation

a little easier with this Dealer Insight special

editorial section. Within the following pages,

you will find a variety of content that will

assist you in maximizing your sales and profits

and will help you gain the competitive edge.

It is our hope that this information will better

enable you to work on your business rather than

in your business. wqp

Stephanie Harris, managing editor [email protected]

2009-2010

DEALERNSIGHT

A special section in Water Quality Products

Business Insights

dealer insight

WEBresourcesRelated search terms from www.waterinfolink.com: business, leasing, financing, dealers

For more information related to this article, visit www.wqpmag.com/lm.cfm/wq060905

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A recent survey of small businesses uncov-ered two important facts: 70% expect business to slow, and most of those expect to increase use of equipment leasing to help deal with the slump. It is no coincidence that these two facts go hand in hand. Leasing frees up funds for cash-starved businesses and extends financing where banks may not. During downturns, tra-ditional lenders tend to tighten credit standards.

Uncertainty is a factor in the decision to lease, and this has never been the case more so than it is today. But now is actually a bet-ter time to lease than we have seen in the past. With revenues and earnings down, everybody wants to preserve cash. A lease allows your customers to obtain something they need without a large capital outlay, and leasing helps your customers to say yes even when the banks may say no.

Leasing in the Water Industry From a water dealer’s point of view, if

you are able to partner with a solid and experienced leasing partner, the benefits of selling a lease include: • Immediate funding of the purchase upon confirmed delivery of the product; • No billing or collection responsibilities; • You are able to focus on selling; and • You avoid discounting your product so you can maintain your full profit margin.

The magnitude of the implosion of our country’s financial institutions has also impacted the leasing industry. Everyday, industry players are forced to exit the mar-ket because they lack the cash, financing and expertise to survive the current chal-lenging environment.

So while now is the time to take advantage of leasing in order to grow your business, how

do you find a dependable and financially viable partner that will not abandon you when you need them the most?

It is critical to examine the track record of your potential leasing company to deter-mine the following: • Are they well capitalized? • How long have they been in business?

• Are they familiar with the water industry? • Do they handle large volumes of microticket deals (less than $15,000)? • Will they accept a wide range of credits? • Will they fund consumer and commercial deals? • Are they a public company with transparency of their financial condition? • Do they value quick deal turnaround or do they take their time making credit decisions? • How quickly will you be paid?

The good news is that a large growth area for water dealers today is leasing for the con-sumer market. The bad news, however, is that at one time there were very few leasing com-panies offering consumer leases—now there are virtually none.

This is why it is important you find a leasing company that provides several f lex-ible consumer lease programs specifically for the water industry. There are more restrictions in this market than with com-mercial transactions, but a valuable leas-ing company will be easy to work with and communicate the program guidelines in a straight forward manner.

There is no doubt that leasing creates huge opportunities for water dealers today for both commercial and consumer transac-tions—as long as you have the right leasing partner behind you. wqpTom Herlihy is vice president of sales & marketing for TimePayment Corp. Herlihy can be reached at 888.685.8770, or by e-mail at [email protected].

For more information on this subject write in 1015 on the reader service card.

Let’s face it: It’s getting tough out there.

Consumers are keeping their wallets

closed, and the businesses you are focusing

on might be struggling to make ends meet.

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dLEASINGbe the Answer?

By Tom Herlihy

In a tough economy, align your business with trusted partners

“I wanted to specialize in one part of the water treatment world, but also be recognized as the one to talk to when you say ‘We really have a problem,’” Wilmink said.

Ozone at Heart He decided to specialize in ozone,

a technology that he says is “at the heart of every operation. There is always one way or another that ozone is involved.”

Wilmink explained, for exam-ple, how ozone technology is suc-cessfully implemented in the dairy industry. The dairy industry uses a high amount of chemicals for disin-fection, but “we replace that whole chemical line with only cold water with the right amount of oxidation reduction potential,” Wilmink said. “The farmer gets better quality milk and a healthier herd.”

Wilmink also provides ozone treatment for the wine industry. “The Key” services 20 to 24 win-eries in Nebraska with equipment. Ozone is used to disinfect barrels, tanks and floors. Wilmink said that when he asks why the winer-ies choose his ozone equipment, they respond: “Because you increase cleanliness, and it is noticeable in the quality.”

In both of these industries, total cleanliness and bacteriological con-trol are increased, which in turn increases quality.

Giving Back An operation with ozone at its

heart—and one into which Wilmink put his heart—is a project provid-ing the Children of Hope Orphanage in Monrovia, Liberia, with a water disinfection system designed and engineered by Wilmink. The ozone oxidation and complete disinfection system has a clean water output of 15 gal per minute.

At the orphanage, which cares for approximately 1,200 children, a few were dying every day because of the lack of safe drinking water. “I’m 61 now, but I hope I can hang in there for many more years and go back to these kids,” Wilmink said.

Another unique treatment oppor-tunity Wilmink has explored is the development of an emergency water mobile response unit. The self-con-tained mobile unit can deliver pure water from any contaminated source, and produces 21,000 gal of clean water per day.

Wilmink received a letter from retired U.S. Army General Barry R. McCaffrey regarding the mobile sys-tem, and is looking forward to intro-ducing the system to McCaffrey. The possibility of the Army implementing the mobile unit may allow Wilmink to have more funding to use toward

dealer insight

Ernie Wilmink, president and founder of “The Key” Water

& Air International, Inc., Lindsay, Neb., is celebrating his

40 th year in the water industry this year. He began his business in

the Netherlands and moved it to Nebraska in 1990.

Ernie Wilmink, president and founder of “The Key” Water & Air International, Inc.

Ozone, education and community service help a Nebraska water dealer succeed

By Rebecca Wilhelm

The Keyto Successto Success

New Westminster, B.C., Canada,purchased an emergency water mobile

response unit in 2007.

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other ventures, such the program at the Children of Hope Orphanage.

Education is KeyEducation remains Wilmink’s

main piece of advice for water pro-fessionals trying to stay successful in today’s market.

“Especially now, in a recession, private treatment is not really the way to go,” Wilmink said. “I would advise people to really learn a lot about other technologies. Get more educated about special programs. Ozone is one of the fastest growing technologies, and is also recognized as safe within the food industry.”

Wilmink suggests the Inter- national Ozone Association (IOA) as a good place to start. “They have people all over the world, and are very educated,” Wilmink said. He was invited to speak at an IOA con-ference in Brussels, Belgium, and has also presented at Water Quality Association events. wqpRebecca Wilhelm is associate editor of Water Quality Products. Wilhelm can be reached at 847.954.7958 or by e-mail at [email protected].

For more information on this subject write in 1016 on the reader service card.

WEBresourcesRelated search terms from www.waterinfolink.com: dealers, residential, ozone

For more information related to this article, visit www.wqpmag.com/lm.cfm/wq060906

As demonstrated by the effects of recent f lu outbreaks, economic implosions and devastating natural disasters, it is one thing to have a contingency plan in place; however, it is quite another to make that plan viable and to act on it appropriately.

Businesses across the country are realizing the value of contracting with a company whose business is to help their clients stay in business during trying times.

To cope with any corporate turmoil, look for a consulting firm with a proven track record of assist-ing a variety of companies through rough spots. Look for a company that has vast resources from which to draw, including a personnel force that includes security officers, negotiations specialists and skilled replacement workers.

Whether you are faced with impending labor negotiations, are reeling from the effects of an indus-trial accident, dealing with a facility closing or trying to keep operations up and running after some sort of environmental crisis, there are ways

to ensure service is only minimally or not at all interrupted.

To ensure business continuity:Have the wisdom to plan. •

Companies cannot afford to be unprepared for a business setback. With the right plan in place, you can minimize your risk. A good contingency plan will include allowances for the necessary specialized security personnel and logistical support as needed, supplemental labor replacement and solid clean-up strategies.

Create a contingency planning • committee to oversee this effort, then have an expert review the plan to ensure proper goals have been established, workable timelines have been set up and the logistics are accurate. The result should be a comprehensive plan ready to be implemented at a moment’s notice.

Develop security measures. • Regardless of the reason why your business is in potential turmoil, you are going to need

security. The personnel you bring on board should have a background in law enforcement, criminal investigation, military operations or specialized security. Before security forces are dispatched, you should thoroughly review your company’s facilities, operations and existing security practices. In this manner, strengths are identified and vulnerabilities are located. The security team you contract with should be well versed in National Labor Relations Board regulations and should comply with all state requirements, including knowing when and how to use video for documentation and incident reports. The security plan should also include some sort of executive and family protec- tion for high-ranking members of your company, and employ- ees should know their role in ensuring security.

When it comes to the replace-• ment workers themselves, act

Tips to ensure

business continuity

By Joe Schollaert

dealer insight

A Good Plan Makes for a Better Business

In light of the devastating natural disasters, corporate

scandals, labor strikes and industrial accidents that have

plagued the U.S. in recent years, more businesses are realizing

that not every eventuality can be anticipated. They are also

realizing that now—more than ever—it is not what happens

to adversely affect operations, it is how you respond to it.

wisely. Hiring temporary workers is a difficult and delicate decision, but it is sometimes a matter of economic survival. Plan ahead and identify the resources you will need, then work with a company that can provide personnel who have the skills you require. The company should supervise those employees on your behalf and tend to any payroll concerns so your company’s managers can concentrate on returning to business as usual.

Keep everyone in the loop. • In uncertain times, it is extremely important to com- municate. You need to let your employees, clientele and internal

management team know how you are handling things at this very moment, and how you will continue to address any difficul- ties or problems encountered. Nobody likes being left in the dark; it can make them nervous and cause them to second-guess your intentions and authority. Be up front and honest—all sorts of people will want to know what is going on so be sure to let them know.

All You Need is a PlanSometimes a good plan is all

you need. A few years ago, when Cleveland-Cliffs, Inc., a producer of iron-ore pellets, was faced with the threat of a labor strike, the

contingency plan established was so strong that the company would have been able to continue operations vir-tually as normal if employees decided to strike. As a result, the union con-cluded that striking would not have the desired negative effect. Employees instead continued working through the negotiations process. wqpJoe Schollaert is senior vice presi-dent and general manager of the International Management Assistance Corp. Schollaert can be reached at 800.554.IMAC or by e-mail at [email protected].

For more information on this subject write in 1018 on the reader service card.

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As a technical sales professional, I have noticed that there is a simi-larity between sales calls and audits performed on existing equipment, and tests and audits performed on equipment pretty much remain the same on every call. For each call, I am armed with a test kit, pen and paper—and that is all I need.

The following is a list of visual inspections and tests to perform on equipment and why these should be performed. Use this as a guide when visiting with your customers.

Softener System InspectionsCheck exterior piping and tanks

for leaks. By making sure there are not any leaks present that could become big gushes of water, you can save a lot of time and help your customer take care of a small issue before it becomes a large one.

Check the water level in the brine tank. A high water level can mean that the brine valve is leaking. If the brine valve is not fixed, it will eventually fail and continue to over-fill the tank causing the salt to dis-solve and waste to drain.

Check pressure gauges. Checking the pressure gauges on the inlet and outlet can determine various things. Many controllers and systems today need minimal pressure to operate properly. A high pressure loss could result in clogged distributors, valves not opening, valves not closing and resin breaking down.

Check the control. Many elec-tronic controllers today offer the ability to view a lot of valuable infor-mation, for example: average usage for seven days a week; peak flows and at what times they occur; how many gallons remain; and at what capacity a system is set (i.e., how

many gallons or grains of capacity). Knowing this information can help determine if the system is working beyond its designed capacity or if the system resin is breaking down.

Check the control valves. Checking the control valves can determine if there are signs of wear and tear. Checking the weep holes on an Aquamatic valve or the pis-ton assembly on a Fleck valve can help avoid future problems. If the weep hole is leaking, you then know it is time to start thinking about rebuilding the valve.

Check the drain. Check the drain to see not only if it is leaking but also if there are signs of resin in or around the drain. If resin is present, it may be showing signs of degrada-tion, and further inspection inside of the tank may be necessary. The other reason to inspect the drain—to see if

it is leaking—is because if a softener is not in regeneration, there should not be water flowing to the drain. If it is, this is a sign that the valves are failing and you will need to repair or rebuild them.

On a nest of a valve or multiport valve system, testing the drain water for hardness can help you determine which valve has failed—if it is hard, then it is the backwash valve; if it is soft, then it is the flush valve.

Water TestingTest for hardness. Testing both

the inlet and outlet for hardness can help determine several things. Testing the inlet can first determine the hardness level. Armed with this information, you can determine if the electronic controller is set prop-erly. If the controller is set lower (meaning the gallons/capacity is at a lower output than what the system is

capable of doing) it may mean that the resin is losing capacity and needs to be tested or replaced.

If you find that the resin is break-ing down, based on current capacity and demand you can figure out what the system is wasting in water usage and salt. By testing the outlet of the softener, you can determine if it is producing soft water.

On larger systems, testing at the bottom of the tank—if acces-sible—can determine if there is a valve problem.

Test for conductivity. Testing conductivity from the inlet and out-let will help determine whether or not the softener has gone through a complete regeneration and if the salt has been rinsed out from the softener before it has come online.

Test for iron. One good reason to test for iron is because of changes in the influent water. Iron is not good for resin and can hinder its performance, especially if it is oxi-dized iron. Clear-water iron can be removed by some resins up to a cer-tain amount. Check with your resin distributor before determining what resin is good for your system.

A Better Understanding After performing these tests, you

will have a better understanding of how the equipment is perform-ing and what is in need of repair. Knowing what is wrong, or what could potentially go wrong, will give you the upper hand when explaining to your customer what needs to be done and the reasons why.

Once your inspection is com-plete, talk to your customer and explain exactly what you found and whether or not they will need to take action. wqpNathan Olszak is a water filtration specialist. Olszak can be reached at 262.496.2115 or by e-mail at [email protected].

For more information on this subject write in 1017 on the reader service card.

Visual inspections and

tests to perform when

visiting customers

In this changing market, one thing is certain: We are all in need

of better, faster information. More customers today are requesting

solutions to their water treatment equipment problems and they are

expecting this information in a timely manner.

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