DOOR DEALER DIALOG

The following article appeared in International Door & Operator Industry Magazine
in the May/June 2004 issue. Used with permission.

Door Dealer Dialog…

Smokey II's Doorman, Inc…
...a special owner and business!

By Chris Long, Editor
International Door & Operator Industry

On March 26, I visited Phoenix, Arizona, the Valley of the Sun, and the home of Smokey ll's Doorman and owner, Kevin Pettiette. Some International Door & Operator readers have encouraged me to profile a dealer with less than $1 million in annual sales, stating, "we want to hear from a small door dealer­ship owner." I selected Smokey ll's Doorman not just because the firm fits the criteria of be­ing a small business, but also because of the highly recognized integrity and quality of the company's owner, Kevin Pettiette.

In 1996, Kevin was recognized with the IDA President's Award, and in 2002 received the highly prestigious Jerry R. Reynolds Volunteer Service Award. These acknowledgements don't come easy, it takes a very special person with a passion for our industry to even be considered. Kevin Pettiette is a special individ­ual, and he does have a true passion for the door and access systems industry.

Kevin hasn't allowed being a small business owner to prevent him from serving the indus­try from which he derives his livelihood. He has served on the Board of Directors of the Institute of Door Dealer Education & Accredi­tation (IDEA), served as the IDEA Treasurer, and held the position of president, Garage Door Association of Arizona. In addition, he has presented a number of educational work­shops on behalf of the IDA and the IDEA.

To illustrate his personal involvement in his business, during our interview Kevin excused himself several times. He once had to handle a customer's question on the telephone. He responded to questions of two in­stallers prior to them leaving for a job, and he person­ally served two 'over-the-counter' customers.

I think you'll enjoy and benefit from reading my conversation with a man who not only "talks the talk", but "walks the walk." His business is indeed small compared to many of his peers, but his business ethics, and his willingness to serve our industry is huge, and matched by only a very special few.

Long: How did you get into the door business?

Pettiette: Like so many others, my dad worked in the business. I actually started when I was an eighth grader working two to three days a week for $2.00 an hour. The name of my business actually stems from my dad who is a retired United States Air Force fighter pilot; his call sign was Smokey. His door dealership is called Smokey's Garage Door, and I was an employee of the firm for 14 years, and yes, I was Smokey II. In 1996, I purchased an existing one man door busi­ness...The Doorman. Thus, my company name be­came Smokey II's Doorman, Inc.

Long: Please describe your business to the readers?

Pettiette: Initially, when I went out on my own and started my company, my goal was to be the big guy. I wanted more trucks, more sales personnel, and to employ more installers. I have been very fortunate in that my annual growth has been positive and manage­able. Growth for me has been consistent, and unlike some companies that grow extremely fast and fail due to lack of management controls, Smokey II's Doorman has sustained good profitability, and excellent quality customer service.

Kevin Pettiette,
President & Service Technician,
Smokey II's Doorman. This past year I came to the conclusion that I don't want to be all that big. I'm not the type of owner and person that likes to micro-manage people, and look over their shoulders all the time. By maintaining my current size, I like the fact that I'm aware of what is going on, and I enjoy being available to provide assistance to my staff whenever needed. At one point this past year, I had a total of six ser­vice trucks; a goal of mine some four years ago. Although I had achieved the goal, I discovered that I couldn't run things professionally.

I now operate four trucks, and am able to maintain a good working relationship with my staff. Of utmost impor­tance, I have a very good staff that performs well together, and supports each other. As long as I'm able to pay them a reasonable income based on their work, they can live a quality life style, and I'm happy, too. I haven't aspirations to be a multi-millionaire, and my wife and I are able to make a comfortable life and raise six children.

Long: What has made your company successful?

Pettiette: An honest group of workers is the core reason for our success. We don't sell products that aren't needed, and our reputation for honesty and quality work has grown. We work very hard to keep good communication with the homeowner. If for some reason we're going to be late for an appointment, we call the customer. This is very important!

One of the unique aspects of my size of business in the Phoenix market is the fact that we do have an office and a showroom. It's not the glass and brass of larger dealers, but it is most suitable for my clients who seek certain over-the-counter products. They're more interested in obtaining quality products, reasonably priced, and someone who can provide technical assistance either face-to-face or via the telephone.

Long: Your business focus is residential. Why not commer­cial as well?

Pettiette: It is what I know, and is within my own com­fort zone. It is what I did with my Dad, and it provides a comfortable living. I'm told that margins are better in the commercial and industrial markets, but I look at tooling up for it, and taking on additional product lines as something I don't care to do. Perhaps I'm fortunate that I haven't had to diversify and move into an area where I am inexperi­enced. However, in this market there is tremendous growth in the residential service side, I don't do any new construc­tion installs. Retrofit is my niche.

"Retrofit is my niche."

Long: As a small business owner, what current issues do you face, especially considering the fact that you manage the company and are also in the field?

Pettiette: A new staff. My employee turnover is always a challenge. Lately, I've had a major turnover, but I'm quite pleased with my current personnel. When you are a small business and lose one person it is substantial as op­posed to a much larger company that for example loses an installer. One of my installers is 25% + of my installing workforce!

Chris Honack checks his vehicle
before departing the warehouse
I'd like to pose a question to the readers who own small dealerships. What do you do to attract and retain employees? I try to make it an attractive workplace. My personal philosophy in life is that I'm not a screamer and demander...I don't manage by fear. I try to have a close relationship with each of my staff members understand­ing that they are human. If I get too many warranty calls, I must respond accordingly. I'm not going to punish an em­ployee for having a warranty call or two, but if it is a daily event then I must take responsibility for that, too.

As for being in the field, I truly enjoy getting out there, and keeping my hands involved with the technical aspectsof the business. This is what you will find with companies my size and smaller. We don't have the differentiation of being a sales, management or technical person...we're all three. In smaller companies, one has to multi-task. As an example, I spend a fair amount of time here at the office, but also, I spend quite a lot of time in the field. Multi-task­ing is the real world of a small entrepreneur.

Long: You mentioned that you have a business facility and that much of your competition does not. Please share your thoughts regarding this sector of our industry.

Pettiette: For the most part the relationship I have with my competitors – the "enemy" is not that at all. We do not maintain an adversarial posture out here. There are forty to fifty door companies advertising in the Phoenix area Yellow Pages. Of these door dealers, many are one and two person shops that keep themselves busy and make a comfortable living. Of the door dealers in Phoenix, maybe a dozen have a "bricks and mortar" facility.

Long: Kevin, why do you think more one and two person dealers aren't IDA members?

Pettiette: With some membership could be free and they're not going to join. They want to do their three or four jobs, go home, and that's it. It really comes down to the individual. Personally, I'm a proponent of training and would like to consider myself as being the best and most knowledgeable in my profession. That's what I seek, strive for, and what has made me the man I am today.

Small dealers who want to improve themselves and their respective businesses are potential IDA members. Those who are complacent with their operations are probably not. IDA and its Affiliates will ultimately reach, attract and serve dealers by providing localized train­ing and education programs. The recently announced Raising the Door Tour joint venture of the IDA and the IDEA is an excellent example of what I feel is needed to best serve small door dealers. This program will not only im­prove a dealer's depth of knowledge, but also their breadth of knowledge.

Long: Some might question the wisdom of you being in­volved with IDA and the Garage Door Association of Arizona (GDDA). Has your involvement been a wise investment of your time?

Pettiette: Absolutely. I've shared a great deal with my peers, and they with me. Countless times I've received referrals from my competition. It is not uncommon for a competitor to tell a customer, "I can't figure this out, but there's this Kevin guy, why don't you give him a call?" I've even had guys call me from a jobsite seeking technical as­sistance. It is flattering to be appreciated, but it is construc­tive, too.

I received a tremendous education from my father re­garding the door business, and I thank him for teaching me so much. However, I am an accountant by education even though I do smell like a working door technician at the end of the day. I enjoy sharing with other dealers, and have found that the rewards coming back to me from doing so are significant.

Long: What industry changes have impacted your business?

Pettiette: Some national franchises have come into our market and preyed on unsuspecting customers. In my opinion, they charge outrageous prices. On the positive side, the opportunity for better training in our industry is expanding.

"Personally, I'm a proponent of training...."

Long: Do you have a sales tip to share with the readers?

Pettiette: Always provide an option. If a part is worn out, you can sell a new opener or replace the part...it should be the customer's choice.

Long: What about an operations tip?

Pettiette: Have your office staff call the customers to let them know when the technician should arrive.

Although this is not directly an operations tip, I find that many of the smaller door dealers don't have extensive busi­ness education or experience. They know how to service and install door products, but are lacking as business owner managers. In my opinion, this is where the IDA, and the IDEA come in. Education and IDEA company accreditation and technician certification are very important to the small door dealer, and more should be taking advantage of the valuable programs available through these two organiza­tions.

Long: Personnel issues are critical regardless of one's busi­ness size. Do you have any words of wisdom or experience to share?

Pettiette: Make sure employees know how important they are individually to the company. Sure, money is nice, but we all need to feel important. One could say that a happy employee is a productive employee.

"....entering the customer's home
is a privilege."

Long: What has had a positive impact on your business during the past two years?

Pettiette: Believe it or not, the reduced quality of some of the manufactured products has lead to a lot of service work. I'm not saying that all products are inferior, but some homebuilders demand a cheap door. When these doors wear out, many of the homeowners choose to seek a door dealer other than the one installing for the builder. This decision of the consumer creates opportunities for dealers like us.

Long: We never like to discuss negative issues, but have you experienced any?

Pettiette: Unfortunately, employee theft, i.e. side jobs that are unauthorized. Dishonesty affects all employees. I recognize that side work is common, so what I've decided is to allow a certain amount of it. I actually have an agree­ment with my employees that covers side work. They must first apprise me of it, obtain a written authorization from me to do it, and then the employee buys the parts from me at retail and must also pay for the gasoline used. They can make their money on the labor..

In my opinion, employee theft is caused many times by factors such as low employee morale. Therefore, we need to take positive action when we begin to recognize a lull in employee morale. One of the things I do is conduct a monthly breakfast meeting outside the office to discuss em­ployee concerns and issues. It provides employees the op­portunity to be open and frank with me. I make sure they understand that I'll not reprimand them, but rather respect them for their input. Sometimes changes are implemented, and sometimes they are not. However, employees appreci­ate the opportunity to speak out.

Long: What makes a company unethical in your opinion?

Pettiette: My goal is not to make all the money that I can make today. And, that is where I think ethical behavior enters the picture. My viewpoint is (down the road) to be in business five, ten, fifteen, twenty years just like my dad. He is successful because he is a very honest man. An ethi­cal door dealer doesn't sell a part that they know isn't bad, and from my view point there has been a major increase in that type of activity with what I call the national franchise organizations.

Ethics stem from the philosophy of the business owner. If all I care about is making money today, then I really don't care what I do to the customer; I'm going to get him for everything I can, jump out the door, run to the bank anddeposit their check before they've realized they've paid too much. I have not done this. My dad never did it. My reputa­tion is just too important to me.

Long: In your opinion, what's the difference between 'up selling' and selling more than a customer needs or wants?

Pettiette: A very good question. The difference is that it is ok to provide options even with obsolete products. We've even suggested that a customer call other dealers to find out if they had a replacement rather than purchase a new prod­uct such as an operator.

Quite often, the customer recognizes our honesty, and we end up providing a new product. In almost all cases, a cus­tomer will recognize integrity and be drawn to it.

I understand the 'up selling' reality that's out there. One significant issue I have is some dealers who inform custom­ers they need parts that never wear out on their own. In my opinion, that's where 'up selling' stops and 'ripping off' begins.

I'm a consumer, too, and I don't want anyone coming to my house and telling me or my wife "here's what I'm going to do for you today." I don't want anyone taking advantage of me, and I shouldn't take advantage of my customers. We in the service business must continuously remind our­selves that entering the customer's home is a privilege. We shouldn't be telling a customer what we're going to do, but rather we should remember whom we are. In my opinion, we are subordinate to the customer, and we need to say 'this is what we recommend, and here are your options'.

Long: Kevin, looking into your crystal ball, what do think will be the next major change in the garage door industry?

Pettiette: In my segment, the impact on residential service and sales due to the continuing deterioration of the ethical stan­dards of some service-oriented firms. Those of us who truly seek to improve industry profes­sionalism may loose good staff to the lure of short-term, higher pay.

"In life and business, I do believe in giving back."

Melanie and Austin at work in the office.

I also think that with the increased number of dealer-to-deal­er acquisitions, the future door dealer will either be very large or a smaller, niche market dealer like I am.

Long: Describe your company's advertising program.

Pettiette: Each of my trucks has uncluttered lettering and presents a professional look by also displaying company infor­mation, IDEA accreditation, and IDA membership. Each techni­cian is provided uniforms with company information. At each house we serve, we affix one company sticker on the door and on the opener with the date of service, and what was done. We also use print advertising, and mid-sized Yellow Pages adver­tisements.

Long: Rising insurance costs are being experienced by all sectors of the construction industry. How has it impacted you?

Pettiette: It hurts, but I just pay what the bill shows. Not a lot we can do. Just adjust our fee structure when we can.

Long: Kevin, you've been recognized by the IDA with two major service awards. Any comments you'd like to share regarding this acknowledgement?

Pettiette: It is very flattering for one to be recognized. In life and business, I do believe in giving back. In the case of my children, I give back to their schools by providing both time and monetary support. As an example, being a coach is a contribution primarily of time. These types of rewards hit at a certain level in my heart especially when I see the kids benefit from my involvement.

In my industry and the profession I've chosen, I, and my family have benefited, and I feel it is appropriate to give some­thing back. When Bill Walker called me a few years ago, and asked whether or not I'd be interested in serving on the IDEA Board it was really a feather in my cap. Although volunteerism can sometimes be a long-term commitment, the intangible rewards one receives are well worth the effort. Personally it has been great, and I have developed a number of friendships from California to Maine.

Chris, I think that my acceptance by the IDA, and the IDEA clearly demonstrates that the two organizations are interested in door dealers regardless of their size of operation. Speaking from experience, I can testify to the fact that IDA serves door dealers large and small recognizing that all need a voice and help.

I'd like to add that as an IDA member, my one vote carries just as much weight as that of a $20,000,000 a year guy. IDA is for all dealers regardless of size.