The Growth Pyramid – Easiest Path to Maximizing Profitable Growth
All businesses are competing to achieve profitable growth in today’s competitive marketplace. In order to achieve profitable growth a business must have strong customer retention. This in turn, comes from customer satisfaction. Customer satisfaction directly relates to employee satisfaction – if employees are pleased and fulfilled this will translate to satisfied customers. In order for employee satisfaction to occur the proper foundation must be built. This can be easiest to represent through a pyramid.

To learn more about how the growth pyramid creates profitable growth, click here.


What To Look For In a New RSR Hire
An ideal route service rep, or RSR, is satisfied, motivated and determined. In the rush tofill an open position we often lose sight of an optimum RSR hire.

Final candidates should go through three interviews. The process should begin with a phone interview, if that goes well the next step is a meeting with a junior staffmember, an example could be meeting with a direct reporting manager. Candidates then can be recommended for a route ride that culminates in a final interview with a hiring manger. All interviews in this process should follow certified interview guides. This article will outline how to source and hire the bestprospective RSR employees.

To learn more about what to look for in a new RSR hire, click here.


Increased Client Revenue and Exceptional Participation Rates For Performance Matters
Performance Matters, a strategic consulting company solely dedicated to the textile rental services industry, reports increased client revenue and consistent outstanding retention rates for their client-based revenue generating projects.

For projects that have been implemented for a full 52-week period, our clients have experienced an average retention rate of 91.6% of the newly created revenue.

To learn more about Performance Matter's success in generation sustained increased revenue for clients, click here.

4-Blocking: Tips For Evaluating Staff and Investing Your Training Time Wisely
Evaluating and developing your staff is vital to strong business growth. When it comes time for your yearly performance reviews, examining employees’ results are important but when was the last time you took a long hard look at your employees and systematically evaluated not only the results they produce but also the behaviors employed to produce those results?

An alternative from more common evaluation techniques the ranking process for 4- Blocking is simple. This method often provides a new perspective of where managers should be investing their employee training and development time and how to improve both productivity and morale on your team.

To learn more about utilizing 4-Blocking , click here.


Customer Feedback – How To Do It, What It Means and What To Do About It
In our industry, we have all stated how important it is to listen to our customers, but do we really? Most companies utilize some type of customer feedback system but the bigger question is not what information we collect, but rather what we do with the results. There are three main steps that need to take place:

1. Look at what questions are being asked. You can’t do anything with the data if the questions aren’t correct.
2. React to the results. Create action plans to internally deal with the feedback.
3. Follow up with the customers – both those with positive and negative feedback.

Take A Look At The Questions That Are Asked
Make sure you are comfortable with the questions being asked of customers. Often, the results of customer surveys are ignored because the staff says the questions weren’t asked properly or they were taken out of context. Take away the excuse and instead, focus on fixing the problem. When you hand off your contact database to your market research company ensure the information is complete so that you can maximize the number of clients contacted. Give clients the option to be anonymous so that they have the confidence to give you honest opinions.

To learn more about what main areas customer surveys should focus on click here.


Performance Matters Introduces Temporary CFO Offering
FORT MILL, SC (September 20, 2011)— Performance Matters, a strategic consulting company solely dedicated to the textile rental services industry, has launched the innovative Temporary CFO offering- the latest in the financial services offered by Performance Matters.

To learn more about how your company can utilize the innovative Temporary CFO offering click here.

Third Dimension of Profit: Principles of Profit
Many people have experienced love at first sight but on occasion your first instinct may not lead to an informed decision. There are times, when business leaders are looking for ways to improve their profit margins, their default choice is to painfully cut expenses or
pay dearly for new client sales revenue. However, there is another choice (and it is not quite The Twilight Zone of business): the third dimension of profit looks at existing revenue to see if it can assist in driving profitability.

It can become daunting to target 100% of clients when searching for ways to achieve new levels of profitability. Instead, consider focusing on the top and bottom 10 percent of your customer base. Companies often look at the whole picture and become
overwhelmed when trying to maximize profitability. For example, it is a common practice to burden loyal long-term customers and those accounts that are in the middle revenue range of our business with price increases, while avoiding asking the largest and
smallest customers to contribute. Starting with the extremes can get that elephant down to a more manageable size and drive the highest impact on profit.

To learn more about the third dimension of profit , click here.


Power of the One-on-One
Increasing profitability is more than just dollars and cents. All members of a company affect the bottom line. One-on-one meetings have the power to increase profits across the board, while introducing accountability and coaching into the recipe for success for your organization.

One-on-one meetings are reoccurring weekly meetings between a manager and their direct reports. This meeting is designed for the direct report to present on their prior weeks targets and collaborate with their supervisor on their own solutions for both
accomplishments and areas of personal growth, as they relate to their Key Performance Measures (KPM’s). In these meetings the manager should recognize results that are on the right track and challenge/coach any area (processes, ideas, employees, etc) that are not producing the desired results.

To learn more about how one-on-one meetings could increase probability for your company , click here.


Performance Matters to Attend Clean Show with New Hire
Janosik will lead the Performance Matters Market Based Energy Program in addition to servicing existing accounts and cultivating new relationships.

To learn more about Performance Matter's location at Clean Show and new hire , click here.

Getting the Most from Your RSR Daily Check-ins
Is this familiar to you today? Route Representatives arrive at work, send their problems to their manager to handle, load their truck and walk out the door.

No matter if you call it a daily check-in, cash out, end of day process or debriefing, it is imperative to touch base with your Route Reps daily. You most likely have some type of quick conversation with your RSR but are you leveraging the opportunity to continually improve their level of success. Your Route Reps are the boots on the ground having face-to-face interaction with your customers and it is important to download both the positives and the challenges of their routes.

To learn more about why daily check-ins are important, what to cover and what the structure should be, click here.


Accounts Receivable: Cash Flow Acceleration
Efficiently managing accounts receivable can change a company from treading water to swimming in calm seas of financial security. Though it can seem daunting, the best possible approach to attacking your accounts receivable is to segment the opportunities. Correctly managed and up-to-date accounts will positively affect cash flow in your organization. Following the benchmarks below can ensure cash flow acceleration.

To learn more about how prevention, evaluation, segmentation, communication and measurement can improve your company's accounts receivable, click here.


Performance Matters Continues Growth Trend
Performance Matters, a strategic consulting company solely dedicated to the textile rental services industry is reporting tremendous success already in 2011.

In just the first three months of 2011, Performance Matter projected revenues already exceed over and above total 2010 revenue. Growth is 36% higher than last year and forecasted weekly revenue improvements for clients have doubled since 2010.

To learn more about Performance Matter's 2011 success and growth, click here.

Vendor or Partner: How Do Your Customers See You?
When your customers think about your textile rental service company, do they see you as just another vendor rather than as a valued partner who brings solutions to their challenges? Do they see your route service reps as delivery boys or true service providers? Analyzing your relationships with your customers is a key step in improving your business.

When your customers see you strictly as a vendor, they become focused on a checklist of what you do rather than truly understanding the value that you bring. When it comes to achieving a renewal, a vendor-based relationship means customers see your services as a commodity and base their decision strictly on price without considering the true value. Our business is not about the transactions - it’s about relationships. To foster those relationships, we must start presenting ourselves as partners, rather than just vendors.

To read more about three ways to transform your relationship from being a vendor into being a partner , click here.

Recent Industry Trends Leading to Changes in Textile Rental Mergers and Acquisitions
Mergers and acquisitions happen on a regular basis in the textile rental services industry. There is a slight lull in activity at the moment as the economy and difficult credit markets have temporarily suspended many M&A activities. Owners are now getting offers lower than they had previously been offered and the big companies in our industry can afford to wait until the economic tides change for the better. Make no mistake however, the time for more M&A activity is coming, and this time, there are some changes to how and why things will be different.

Trend #1: New Investors Coming to the Table
The top four players in the textile rental field currently control approximately 70% of the garment/ancillary rental market and the consolidation will continue to increase. The scale of the national companies enables larger players to cover fixed and increasing operating costs while investing in more efficient and technologically advanced equipment.

Prior to the recession, a shift was beginning to occur: private equity companies began investigating our industry. Several independent textile rental companies have been purchased in the last few years not by competitors, but by private equity companies who see the potential in investing in textile rentals. That said, private equity firms aren’t in the business of investing millions in companies just to explore a new industry. Their focus is in making money and eventually, these smaller companies will either be merged together or, more likely, be sold to the nationals at a higher price.

To read more about trends leading to changes in Textile Rental M&As and what you can do to prepare for those changes, click here.

2010 SIMPLY SAMPLING CASE STUDY
THE CHALLENGE
Traditionally, textile rental service companies have primarily depended on their sales teams to drive new product sales. This means the weight of driving new revenue was typically placed solely on the shoulders of a few sales people while neglecting the possibility of utilizing a full service team staff who were already interacting with customers on a daily basis. To exp and this thinking, Performance Matters led a two-day seminar in the spring of 2010, entitled “Simply Sampling.” A select number of Service Managers from non-competing markets were invited to learn how route reps can greatly affect the bottom line and to share their insights and best practices. The sessions focused on how to identify customer needs and improve sales by teaching proprietary sampling techniques that have been honed from years of experience.

To read more , click here.

TWO-YEAR 6-PROJECT CASE STUDY

THE CHALLENGE
In late 2007, a third-generation industrial textile rental company with 11 routes was struggling to maintain their ground against the national companies closing in on their market share. Company X knew they offered better customer service than their competition but were looking for ways to replace the revenue they had lost. Additionally, Company X wanted to create customer-focused programs that would differentiate themselves within the market. This client was referred to Performance Matters for their expertise in increasing revenues while reducing expenses and breaking down internal silos between departments.

To learn more about the the solution to the challenge click here.

 

The Importance of Knowing Your Textile Rental Company's Value

A doctor can't look at a patient's appearance and automatically issue a diagnosis. Even worse is trying to diagnose the problems yourself. This common sense also applies to business: looking at a balance sheet, income statement or statement of cash flows may help determine how the financial health of your business appears on the surface, but will not represent your company's actual worth. It is important to take the time to analyze your company's worth beyond what you would estimate based upon a weekly revenue multiple.

In our industry, many companies determine their current value by looking at weekly revenue multiples. Multiples vary by industry and company and can change quickly based on economic conditions. Often, companies look at what multiples were used for other industry buy-outs as a baseline, but this data can be skewed by the large nationals who find additional efficiencies during acquisitions.

Why do textile rental companies need to understand what their businesses are worth today?

Reason #1: Mergers and Acquisitions

•  The amount of M&A occurring in our industry continues to grow given the recent economic uncertainty. Proper valuation allows owners to be able to set a benchmark price and objectively evaluate bids for their companies. In the case of a buy-out , a valuation allows a price to be set for an ownership partner's share of the business. In the case of two or more businesses merging together, owners can use valuations to determine their respective ownership percentages in the pro-forma/combined company.

Reason #2: Personal Life Changes / Estate Planning

•  In our industry, the ownership of a company often gets passed down through the generations. Obtaining an accurate valuation can be helpful for a number of estate planning needs including: taxation, divorce settlements (dividing up assets), writing a will and asset portfolio management (determining what percentage of your net worth is tied up in the business.)

To read more about knowing your company's value, click here.

 

Current Energy Trends Show Volatility for Textile Rental Services

It's no surprise that energy prices are constantly on a rollercoaster. As Americans we've become accustomed to constant swings in our costs, but rarely do we stop and think about the impact it has on our industry. In textile rental services, we tend to focus on the fuel prices for delivery and forget about other important factors such as natural gas, electricity and the pricing cost of petroleum-based products. Hopefully, your textile rental service company is constantly analyzing the impact that all energy costs have on your bottom line and that you know how to properly pass those costs on to your customers.

Three questions:
•  Do you currently measure and trend your energy costs?
•  Have you tied these metrics and trends to your energy-related revenue?
•  What are you doing to prevent future swings from affecting your margins?

Short-Term Oil Forecasts

With the amount of driving our service teams do every day, it's no wonder that oil prices have a major impact. According to JP Morgan's Short Term Oil Forecasts, the Greek economic crisis that prompted the rapid strengthening of the dollar over the past few weeks has triggered a slump in oil prices. At the same time, a steeper than normal increase in crude oil inventories and seasonally weak demand has also led to the decrease in prices. Experts expect these prices to increase but debate over whether that will happen in August or later in fourth quarter.

Gulf Coast Oil Spill Impact

The BP Gulf Coast oil spill continues to dominate the headlines as the worst oil spill in US history. We are just starting to scratch the surface of understanding the environmental impact of both the oil spill itself and the large-scale use of the chemical dispersant Corexit. There is debate as to how much oil seeped into the gulf during that time. Current estimates range from 420 million to 840 million gallons (10-20 million barrels) leaked since the April 20th explosion aboard the Deepwater Horizon drilling platform. The larger figure would make this spill nearly twenty-eight (28) times the size of the 1989 Exxon Valdez disaster!

To read more about current energy trends, click here.

Four Steps to Drive and Measure Success for Textile Rentals
How do you drive and measure success in your business? When you look beyond the bottom line, past the profits and margins, how do you really understand what is working and what needs to be improved? When was the last time you really evaluated what information you use to run your business? There are three key steps to knowing how to drive business while accurately measuring, trending and reporting information within your textile rentals services company.

1. Understand What to Measure - There are two parts to understand what you need to measure for your business. First, you have to really evaluate your end goal and make sure that the entire company is focused on meeting that goal. We refer to this step as “Creating the Vision.” Many executives confuse having a vision with having a mission but they are two separate entities. A mission is what you want to portray to the outside world. A vision is the goal that all internal teams should work together to achieve.

To read more about driving and measuring success, click here.

How to Improve Retention and Increase Sales through Effective Plant Tours
Our industry isn't exactly known for giving dynamic plant tours. In fact, we rarely do them, but a plant tour is a great opportunity to showcase your competitive advantages. It gives prospects the opportunity to see what happens behind the scenes and reveals not only how advanced your procedures are but also how much time and attention goes into doing things the right way to service your customers. In addition to garnering new sales, using well-executed plant tours can strengthen your relationship with current customers, especially those who need to be reassured of your commitment and capabilities.

When you think of plant tours, most of us envision potential new customers getting walked around while a plant manager points out all the various equipment. Have you ever really stopped and thought about what a properly conducted plant tour could mean to your bottom line? Neither have your independent competitors. On the other hand, that may be why you are losing business to the national companies who often do a terrific job at organized plant tours. Luckily, a dynamic plant tour can be executed no matter your company's size. Don't focus on the fact that your plant may not have all the bells and whistles of a competitor's newer facilities. Instead, emphasize what makes you unique. Need more motivation? Consider that your closing rate (or renewal rate) is almost guaranteed to substantially increase if you can convince a prospect (or customer) to join you on a tour that follows our recommendations.

To read more about how use a plant tour to achieve your financial objectives, click here.

Performance Matters Introduces Financial Services Offering
FORT MILL, SC (April 12, 2010)- Performance Matters , a strategic consulting firm that focuses solely on textile rentals, has extended its offerings to include financial services to meet the needs of the industry. As interest in mergers and acquisitions begins to rise, and companies continue to struggle with how to conduct a true valuation of their businesses, Performance Matters put together a team of specialists dedicated to helping companies understand what their company is truly worth.

“Our industry is in a period of transition,” said Troy Lovins, president and founder of Performance Matters. “The troubled economy, changes in government regulations, and the tightening of profit margins have many regional and independent companies looking at different options. Our clients have asked us to help them with their strategic planning to enhance their net worth. Whether their reason is to provide proper employee incentives, develop an estate plan, create additional value or to consider the option of mergers or acquisitions, the first step is to establish a benchmark by knowing the current value of their business.”

To read more about how use a plant tour to achieve your financial objectives, click here.

Four Steps to Improving Retention and Growing Market Share
In today’s tough economy and challenging competitive market, mid-size and independent textile rental companies can’t afford to lose any customers. Before you can focus on getting new customers, it is important to look at what you need to do to keep the ones you already have. After all, it is much easier and less expensive to keep customers than to get new ones. Consider the following statistics1:

• Acquiring new customers can cost five times more than satisfying and retaining current customers
• A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
• The average company loses 10% of its customers each year
• A 5% reduction in customer defection rate can increase profits by 25% - 125%, depending on the industry
• The customer profitability rate tends to increase over the life of a retained customer

To read more about how to improve your customer retention, click here.


How to Improve the Dynamics of your Weekly Route Rep Meetings
Let’s be honest. Most route reps would prefer to slam their fingers in a truck door than attend their weekly route rep meeting. And, chances are, their managers feel the same way. Can you blame them? Think about the typical delivery team meeting. Each week, route reps sit through information-download sessions where they typically hear about standard procedures and information that doesn’t require a face-to-face meeting. Hopefully your sessions aren’t the norm, but this type of meeting is all too common in our industry.

The basic premise of a weekly route recap is a good one – get the whole team together to communicate and learn from each other. Unfortunately, along the way, most of these meetings have shifted from a pull-approach (having route reps share key insights with each other) to a push strategy (one that focuses more on top-down management). Often, the meetings become so monotonous that instead of fixing the problem, the frequency of the meetings is reduced. The good news is that meeting dynamics can quickly change and route results will improve once the sessions become more about the route reps sharing information than being manager-focused.

To read more about how to improve the dynamics of your weekly route rep meetings, click here.


Performance Matters Sees Substantial Growth in 2009
FORT MILL, SC (December 17, 2009)—In 2009, Performance Matters, a strategic consulting company solely dedicated to the textile rental services industry, saw a 78 percent increase in revenue, hired five new industry specialists, increased its service offerings and implemented significant programs with four of their newest clients.

“The economic downturn and increasingly competitive landscape has forced textile rental services companies to reevaluate their strategies and objectives,” said Troy Lovins, president and founder of Performance Matters. “We owe our success to having clients who understand that now is the time to implement new processes to increase revenues, decrease spending and increase market share.”

To read more about Performance Matters’ 2009 growth, click here.